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Friday, March 29, 2024

San Miguel food unit selling P142-billion worth of shares

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San Miguel Food and Beverage Inc. plans to raise P142.8 billion from the sale of up to 1.02 billion secondary shares before the end of the year, sources said Wednesday.

Informed sources said SMFB filed with the Securities and Exchange Commission on Wednesday an application for a follow-on offering involving the sale of 887 million secondary shares owned by parent company San Miguel Corp. and another 133 million shares to cover over-allotments.

The company set an offer price of up to P140 per share, significantly higher than the stock’s closing price of P80 on Wednesday.

SMFB hired JP Morgan Securities Plc, Morgan Stanley Asia (Singapore) Pte., UBS AG Singapore, Goldman Sachs (Singapore) and Duetsche Bank as the international book runners.

BDO Capital and Investments Corp. and BPI Capital Corp. were tapped as the local lead underwriters for the offering.

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The planned share sale will enable the company to comply with the 10-percent minimum public ownership requirement of the Philippine Stock Exchange for listed companies.

The public float of SMFB is currently less than 5 percent after implementing a share swap with San Miguel to facilitate the merger San Miguel Foods Co., San Miguel Brewery Inc. and Ginebra San Miguel.

Sources said if the P142-billion planned share sale of SMFB pushed through, it would be the largest equity deal in the local bourse and would easily surpass the P38-billion ($912 million) follow-on offering of LT Group Inc. of beer and tobacco billionaire Lucio Tan.

SMFB reported a consolidated net income of P15.4 billion in the first half, up by 20 percent from a year ago.

Six-month consolidated revenues increased 15 percent year-on-year to P137.4 billion while operating income went up 20 percent to P22.9 billion.

San Miguel Brewery registered an 18-percent increase in revenues to P62.5 billion, while Ginebra San Miguel also recorded a strong first-semester performance as net income almost doubled from last year. 

SMFB’s food group posted consolidated revenues of P62.9 billion, or 12 percent higher than a year earlier, driven by the strong performance of feeds, poultry and meats and the branded value-added businesses. Operating income grew six percent to P4.7 billion.

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