JG Summit closes deal for Meralco shares


The Gokongwei-led JG Summit Holdings, Inc. has formalized its entry in the country’s largest power distributor as it completes the acquisition of the stake in Manila Electric Co. (Meralco) from conglomerate San Miguel Corp. (SMC).

A disclosure to the Philippine Stock Exchange on Wednesday showed that JG Summit successfully completed the acquisition of 305.7 million common shares of Meralco from SMC, San Miguel Pure Foods Co. Inc., and SMC Global Power Holdings Corp.

Few weeks ago, JG Summit did several fund-raising activities to come up with the amount it owes to SMC for the Meralco shares.

Specifically, JG Summit tapped the bond market with a plan to raise up to P30 billion in order to fund its acquisition of all the remaining stake of SMC in Meralco.

JG Summit told the local bourse a few weeks ago that it has just filed a registration statement with the Securities and Exchange Commission in relation to its proposed issuance of retail bonds in the aggregate principal amount of up to P20 billion, with an oversubscription option of up to P10 billion.

The net proceeds from the bond issuance, according to the listed conglomerate, shall be utilized by the company to partially finance its acquisition of Meralco shares and for general corporate purposes.

BDO Capital and Investment Corp., BPI Capital Corp., First Metro Investment Corp., The Hong Kong and Shanghai Banking Corp., and Standard Chartered Bank were tapped the joint lead underwriters.

Earlier than that, JG Summit raised P8.8 billion via an overnight equity sale. The proceeds from the sale will likewise be used to partially fund the Meralco stake acquisition.

The equity sale was priced at P40 per share through a placement of 98.1 million treasury shares and an additional placement of 121.9 million common shares from selling shareholders.

In early October, JG Summit announced that it will purchase the entire stake of SMC in Meralco for P72 billion. The remaining entire stake of SMC in Meralco amounts to about 27 percent of the power distributor’s total outstanding shares.


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