MANILA, Philippines - GT Capital Holdings is looking to raise as much as P12 billion from an offering of perpetual preferred shares.
The board of the Ty family-led holding company has approved the issuance of up to eight million preferred shares with an oversubscription option of up to four million shares at an offer price of P1,000 per share.
Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated.
GT Capital’s head of investor relations Jose Crisol Jr. said proceeds of the fund-raising activity would be used “to refinance previous acquisition costs paid through bridge financing and also for other general corporate purposes.”
The company plans to issue the preferred shares within the third quarter of the year, subject to regulatory approvals.
GT Capital recently made its foray into the infrastructure business through the acquisition of a stake in Metro Pacific Investments Corp. (MPIC) in a deal announced last month.
It acquired a 15.6 percent stake in MPIC through a strategic alliance with the infrastructure conglomerate.
MPIC, meanwhile, gained a 56 percent stake in GT Capital’s Global Business Power, the leading power generation company in the Visayas, for P22.06 billion.
GT Capital will cede majority control of Global Business Power to MPIC associate Beacon Electric Asset Holdings Inc. but will then enter as a strategic investor in MPIC, acquiring 15.6 percent of the conglomerate for P21.96 billion.
This makes GT Capital the second largest investor in the infrastructure conglomerate as it sets its sights on the growing infrastructure business in the country. Hong Kong-based First Pacific will retain a majority 55 percent stake in MPIC.
Global Power is the leading power supplier in Visayas with an aggregate 852 megawatts of coal and diesel-powered generating capacity at present. The main development project is a 670 MW super-critical coal-fired plant in La Union.
GT Capital’s businesses are housing and property through Federal Land Inc.; automotive through Toyota Motor Philippines; banking through Metrobank and financial services through Toyota Financial Services Philippines Corp.