TOP Frontier Investment Holdings Inc. (TFHI), the largest shareholder of diversified conglomerate San Miguel Corp. (SMC), said on Monday that it has issued P25.88 billion worth of convertible securities to a British Virgin Islands company as part of funding arrangements for its outstanding loan obligations.
In a disclosure to the Philippine Stock Exchange, Top Frontier said it issued peso-denominated securities amounting to P25.88 billion in favor of Bryce Canyon Investments Ltd., a firm registered in the British Virgin Islands, which are convertible to preferred shares in TFHI.
“In line with the funding arrangements undertaken by TFHI for its outstanding loan obligations, the Company, on June 30, 2016, issued peso-denominated perpetual securities which may be convertible to preferred shares of TFHI in favor of Bryce Canyon Investments Ltd.,” the company told the local bourse.
Top Frontier owns 66.2 percent of SMC. It listed on the PSE in January 2014 by way of introduction.
Under such form of listing, a company may go public without having to raise funds through a share sale.
As of end-2015, Top Frontier had about P400 billion in long-term debts, mainly secured by San Miguel and its subsidiaries.
For the first three months of the year, Top Frontier more than doubled its net earnings to P14.6 billion versus the P6.13 billion realized during the same period a year ago on the improved performances of SMC and its units.
Consolidated sales revenue of the group reached P159.62 billion, slightly higher than the same period in 2015. Most businesses increased their revenues, but consolidated sales were weighed down by Petron Corp.’s lower revenues during the period.
The group’s consolidated operating income reached P22 billion, a 40 percent jump from the same period last year, which it attributed mainly to Petron’s higher refinery margins, higher full quarter contribution of infrastructure units Metro Manila Skyway and South Luzon Expressway, core beverage, food and packaging business’ double-digit income growth as well as the energy business’ improved income performance, Top Frontier said.
Top Frontier’s wholly owned subsidiary Clariden Holdings Inc. holds several mining permits in the country, including a mineral production sharing agreements for the Nonoc Nickel Project, Mt. Cadig Nickel Project and Lo-oc limestone project; exploration permits for certain areas under the Bango Gold project; a pending application for a production sharing agreement, and pending exploration permit applications for other areas of the Bango Gold Project.