THE Securities and Exchange Commission (SEC) has given its go signal to the planned P12-billion share sale of GT Capital Holdings Inc., proceeds of which will be used to finance the company’s debt obligations and acquisition deals.
In an en banc session, the corporate regulator approved GT Capital’s offer of up to 12 million perpetual preferred shares priced at P1,000 each.
The preferred shares are classified as cumulative, non-voting, non-participating, and non-convertible.
GT Capital will initially offer 8 million shares, with an oversubscription option of 4 million shares.
The base offer is expected to generate P7.94 billion net proceeds after listing-related fees and taxes, but if the offer is oversubscribed, net proceeds will reach 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 filed with the SEC.
GT Capital has four existing loan facilities amounting to P9 billion which are all set to expire on October 28 this year.
These loans were from 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 George Ty-led conglomerate earlier entered the infrastructure sector through the acquisition of a 15.6 percent equity stake in the Manny Pangilinan-led infrastructure giant Metro Pacific Investments Corp. (MPIC) in May for P21.96 billion.
In turn, MPIC acquired a 56 percent majority stake in GT Capital’s power vehicle in the Visayas, Global Business Power Corp, for P22.06 billion.
GT Capital’s net income rose 62 percent to P9.1 billion in the first six months of the year from P5.6 billion in the same period last year.
Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land and Pro-Friends), power (Global Business Power), automotive (Toyota Motor Philippines and Toyota Manila Bay Corp.), automotive leasing and financing (Toyota Financial Services Philippines Corp.), and life insurance (AXA Philippines). Through its MPIC stake, it has an indirect presence in power distribution, toll roads, water utilities, health care and real estate subsidiaries.