Feb. 08--THE Securities and Exchange Commission (SEC) has cleared the P30-billion fund raising of JG Summit Holdings Inc., which it would use to bankroll the acquisition of 27 percent of San Miguel Corp. shares in the Manila Electric Co.
In early October, JG Summit announced its plan to buy the entire stake of SMC in Meralco for P72 billion. The remaining shares of SMC in Meralco is about 27 percent of the power distributor's total outstanding shares.
The Meralco stake was sold to JG Summit by SMC and its units San Miguel Pure Foods Co. Inc. and SMC Global Power Holdings Inc.
A month after that, the Gokongwei-led JG Summit said it is set to tap the bond market, planning to raise up to P30 billion in order to fund its acquisition of all the remaining stakes of SMC in Meralco.
For the company to proceed with the bonds offering, it needed the SEC's approval.
JG Summit then filed a registration statement with the SEC on its proposed issuance of retail bonds in the aggregate principal amount of 20 billion with an oversubscription option of up to P10 billion.
In a recent en banc meeting in the SEC, it was mentioned that the commission has already given its approval to offer up to P30-billion bonds in five-, seven- and 10year terms.
"The company will be offering an aggregate principal amount of P15 billion with a subscription option of up to P15 billion granted by JG Summit in favor of the joint lead managers and joint lead underwriters to be issued in [three] series," JG Summit told the Commission.
The net proceeds of the offer, as cited in the company's filing with the SEC shall be used by JG Summit for general corporate purposes and to complete its acquisition of 305.7 million Meralco shares from the San Miguel Group. The first tranche of the offer will be issued with an aggregate amount of P30 billion with an oversubscription option of up to P15 billion granted by JG Summit.
The joint lead managers and underwriters include BPO Capital and Investment Corp., First Metro Investment Corp., BPI Capital Corp., The Hongkong and Shanghai Banking Corp. Ltd. and the Standard Chartered Bank.
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