San Miguel’s Biggest Stakeholder to List Shares by Introduction

San Miguel Corp.’s majority stakeholder will list through introduction all its shares on the Philippine Stock Exchange to raise funds for expansion, President Ramon Ang said.

Top Frontier Investment Holdings Inc.’s board today approved the filing of an application for listing of shares, including the 240.2 million declared as property dividend by the board of San Miguel, the latter said today in a stock exchange filing. The listing will also address cross-holdings between San Miguel and Top Frontier, Ang said today in a mobile-phone text message.

Top Frontier owns 66 percent of the biggest Philippine company by sales, according to data compiled by Bloomberg. San Miguel in turn owns 49 percent of Top Frontier, controlled by its directors Inigo Zobel and former trade minister Roberto Ongpin.

“It’s possibly in preparation for capital-raising to fund San Miguel’s expansion,” Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said in Manila.

Listing by introduction allows companies to list their shares on a stock exchange without making an initial public offering.

San Miguel, which started as a brewer more than 100 years ago, plans to raise about $4 billion selling power assets, Ang said in July, helping fund a $35 billion investment plan that will complete its transformation into an investor in airlines, energy, mining and railways. The company has made more than $5.6 billion worth of acquisitions since 2008.

San Miguel will distribute 240.2 million Top Frontier stocks as property dividend at a ratio of one Top Frontier common share for 10 San Miguel common stocks, according to a separate filing today.

“It doesn’t make sense to list Top Frontier with just San Miguel as its assets because that wouldn’t be attractive,” Astro del Castillo, managing director at First Grade Holdings Inc. in Manila, said by telephone. “Top Frontier will probably have assets aside from San Miguel shares.”

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