Conglomerate San Miguel Corp. has set the terms for the P33.5 billion preferred shares offering, a move meant to fund an older series of preferred shares.
In a disclosure to the stock exchange, San Miguel’s new preferred shares will be issued in three subseries – 5.9431 percent per annum for subseries 2-D, 6.3255 percent per annum for the subseries 2-E, and 6.8072 percent per annum for the subseries 2-F.
The preferred shares also have a step-up rate where the dividend rate will be adjusted to if the shares are not redeemed on the optional redemption dates. If San Miguel does not redeem the preferred shares on the 3rd, 5th, and 7th year and every dividend payment thereafter, it will have to pay an additional 3 percent to the original rate.
Based on the regulatory filing, San Miguel will issue 446.447 million Series “2” preferred shares at an issue price of P75 per share.
The offer period for the San Miguel preferred shared will be from Aug. 24 to Sept. 11, 2015. Listing date has been set on Sept. 21, 2015.
San Miguel earlier hired nine banks to handle the transaction. These are HSBC, Standard Chartered Bank, ING, BDO Capital, BPI Capital, China Bank, PNB Capital, RCBC Capital, and Security Bank Capital.
San Miguel is one of the largest and most diversified conglomerates in the Philippines by revenues and total assets, with sales of about 6.2 percent of the Philippine gross domestic product in 2014.
The extensive portfolio of SMC products includes beer, liquor, non-alcoholic beverages, poultry, animal feeds, flour, fresh and processed meats, dairy products, coffee, various packaging products and a full range of refined petroleum products, most of which are market leaders in their respective markets.