MANILA, Philippines - Emperador Inc. is taking in a new strategic stakeholder that is investing as much as P22 billion to acquire up to 11.76-percent equity stake in the liquor firm.
Emperador said Singapore’s sovereign wealth fund GIC is pouring in P17.6 billion in the company, with an option to invest P4.4 billion more over a 13-month period to further hike its stake.
Emperador said GIC’s P17.6-billion initial investment comprises an equity investment of P12.32 billion for the purchase of 1.12 billion common shares representing a 6.95 percent direct equity stake in the company.
It also purchased P5.28 billion worth of equity-linked securities (ELS) which have a term of up to seven years and convertible into 480 million common shares of Emperador under preset terms at the option of both firms.
If the ELS are converted into common shares, Emperador said GIC’s equivalent equity ownership will increase to 9.64 percent.
Likewise, Emperador said GIC’s effective ownership in the company could further balloon to 11.76 percent should it decide to exercise its option to invest an additional amount of P4.4 billion.
The Emperador equity and ELS would be sold at P11 per share.
“We welcome the entry of GIC, a reputable world-class global fund manager, into Emperador. Emperador has a strong capital position and the transaction is a partnership with a long-term and like-minded investor. The partnership enhances Alliance Group Inc.’s track record of growing companies into market leaders through strong execution, brand building and product innovation,” Emperador chairman Andrew L. Tan said.
The Emperador equity and ELS are priced at P11 per share. UBS AG acted as financial adviser of Emperador in the transaction.
Emperador is the largest spirits company in the Philippines and the world’s biggest brandy producer.