JG Summit Holdings Inc. founder John Gokongwei Jr. has disposed P11.7 billion worth of his personal shares in his flagship via overseas transaction on Thursday, which pushed the Philippine Stock Exchange index (PSEi) sharply down after three days of gains.
In a disclosure to the Philippine Stock Exchange, JG Summit said its founder and chairman emeritus Gokongwei sold 142.5 million of the company’s shares at P82.10 a share, about 1.99 percent of outstanding shares.
Upon the completion of the transaction, Gokongwei still has 58 million JG Summit shares, equivalent to 0.8 percent of the company’s outstanding capital stock.
The Gokongwei patriarch had 200.51 million shares under his name before the sale of shares.
Gokongwei initially offered to sell 120 million JG Summit shares at an indicative price range of P82.10 to P85.75 per share, equivalent to a discount of up to 10 percent from Wednesday’s close of P91.20.
While the shares were sold at the lower end of the indicative price range, the offer size was increased to 142.5 million shares because it was several times oversubscribed.
After the transaction, the price of JG Summit shares dropped 9.65 percent to close at P82.40 per share yesterday.
The Gokongwei group owns about 42 percent of JG Summit held through Gokongwei Brothers Foundation Inc. (27.88 percent) and a trust account at Robinsons Savings Bank (14.43 percent) which were listed as the firm’s principal shareholders.
Gokongwei is scheduled to retire later this year and had disposed a big chunk of JG Summit shares worth P32 billion in favor of his children last year.
Largely due to the Gokongwei sale, the benchmark Philippine Stock Exchange Index fell by 1.17 percent or 87.57 points to close at 7,376.38 on Thursday.
Lester Azurin, head of research at Unicapital Securities Inc., said that the drop in the main index was mainly caused by the share sale of the senior Gokongwei.
“It accounted for 54 points shed by the main index,” Azurin said.
Last October, the company disclosed that Gokongwei sold 475.38 million JG Summit shares at a price of P68.4 apiece. JG Summit senior vice-president and chief strategist Bach Johann Sebastian said they were “transfers among Gokongwei family members.”
It was also disclosed that JG Summit president, and the elder Gokongwei’s only son, Lance Gokongwei purchased 165.29 million shares in the conglomerate at P68.4 each.
The transaction augmented his direct interest in the conglomerate to 7.56 percent.
JG Summit Director Robina Gokongwei-Pe, on the other hand, bought 105.31 million shares at P68.4 per share, thus increasing her stake to 2.5 percent.