San Miguel Seeks $310 Million From Manila Electric Share SaleIan Sayson and Philip Lagerkranser
San Miguel Corp. is seeking to raise $310 million from selling part of its stake in Manila Electric Co., the largest power retailer in the Philippines.
Manila-based San Miguel is offering 46.3 million to 48 million Manila Electric shares at 270 pesos to 280 pesos apiece, according to terms for the transaction obtained by Bloomberg News. The price range is a 7.4 percent to 10.7 percent discount to the stock’s closing price today. San Miguel has an option to increase the sale by $75 million, the terms show.
The sale of part of its 32.8 percent stake in Manila Electric will help San Miguel raise the funds it needs to expand beyond beer and food production. The Philippines’ most acquisitive company plans to spend $35 billion to transform into an investor in energy, mining, airlines and roads. The company announced 40 purchases worth $7.8 billion since 2000.
“This certainly eases speculation over San Miguel’s ability to cover its debt in light of the big infrastructure projects it’s getting into,” James Lago, head of research at Manila-based PCCI Securities Brokers Corp., said by phone today. “The proceeds can also fund these projects.”
San Miguel Chief Financial Officer Ferdinand Constantino and spokeswoman Jane Llanes weren’t immediately reachable when telephoned at their offices. Phone calls to the offices of Manila Electric President Oscar Reyes and Chief Financial Officer Betty Siy-Yap weren’t answered.
Manila Electric shares rose 3.1 percent to 302.40 pesos at the close of trading today. San Miguel climbed 3.3 percent.