The Philippine Stock Exchange (PSE) has approved the P12-billion share sale planned by GT Capital Holdings Inc. via a follow-on offering, the proceeds of which will be used to finance the company’s debt obligations and acquisition deals.
The exchange posted the approval notice on its website on Monday, two weeks after the Securities and Exchange Commission approved the share sale. “The Exchange’s approval of the offer is subject to the company’s compliance with all of the conditions and post-approval requirements of the exchange.”
GT Capital is offering up to 12 million perpetual preferred shares at P1,000 each. The shares are classified as cumulative, non-voting, non-participating, and non-convertible stocks.
The George Ty-led conglomerate would initially offer 8 million shares, and 4 million more shares in case of an oversubscription.
The base offer is expected to generate P7.94 billion of net proceeds, after deducting listing-related fees and taxes. If the offer is oversubscribed, the net proceeds are expected at P11.92 billion.
“The company expects to use the net proceeds from the offer … to refinance previous acquisitions paid through bridge financing within the fourth quarter of 2016, and to fund strategic acquisitions,” GT Capital said in a prospectus.
GT Capital has four existing loan facilities amounting to P9 billion, all set to expire on October 28 this year. These loans were from the Philippine National Bank (P4 billion), Security Bank Corp. (P2 billion), Bank of the Philippine Islands (P2 billion), and Development Bank of the Philippines (P1 billion).
The company entered the infrastructure sector through the acquisition of a 15.6-percent equity stake in the Pangilinan-led infrastructure giant Metro Pacific Investments Corp. (MPIC) in May. The transaction was worth P21.96 billion.
In turn, MPIC acquired 56 percent majority holdings in GT Capital’s power vehicle in the Visayas—Global Business Power Corp.—for P22.06 billion.
GT Capital saw its net income rose by 62 percent to P9.1 billion in the first six months of the year from P5.6 billion a year earlier.