JG Summit generates P8.8B from share offer


Via an overnight equity sale, conglomerate JG Summit Holdings Inc. was able to raise P8.8 billion, which will be used to fund its acquisition of Manila Electric Co. (Meralco) shares.

JG Summit told the local bourse on Tuesday that 220 million of its shares were sold via an accelerated overnight equity placement. The equity sale was priced at P40 a share through a placement of 98.1 million treasury shares, and an additional placement of 121.9 million common shares from selling shareholders. From the placement, the group raised a total of P8.8 billion.

“The proceeds from the offering will be used to partially fund the Meralco acquisition and for general corporate purposes,” the Gokongwei-led conglomerate said.

The transaction, the company further said, was done to widen its shareholder base, and to respond to the strong demand for the company’s stock.

CLSA Ltd. UBS AG acted as joint bookrunners for the transaction. Considered the newest party involved in San Miguel Corp.’s divestment from the country’s largest power distributor, JG Summit announced on exactly the first day of October that it will purchase the entire stake of SMC in Meralco for P72 billion.

Specifically, the remaining entire stake of SMC in Meralco only amounts to about 27 percent of the utility company’s total outstanding shares, and this was then valued at approximately P72 billion. According to JG Summit, it intends to finance the acquisition of SMC’s Meralco state with a combination of debt and equity capital.

The stake that was sold to JG Summit was those held by SMC and its units San Miguel Pure Foods Co. Inc. and SMC Global Power Holdings Inc.


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