SEC approves sale of P40 billion SMC preferred shares
Iris Gonzales (The Philippine Star) - October 1, 2020 - 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC), the corporate regulator, has given the green light to diversified San Miguel Corp. (SMC) for its plan to sell up to P40 billion in preferred shares over a three-year period.

In its meeting on Sept. 29, the SEC resolved to render effective SMC’s registration statement for up to 533 million Series 2 preferred shares to be offered within a three-year period, subject to certain remaining requirements.

SMC expects to net P19.8 billion from the offer, assuming the oversubscription option is fully exercised, which would be used to fund its flagship infrastructure projects such as the $15 billion Manila International Airport project in Bulacan and the MRT-7 Project.

Proceeds would also be used for general corporate purposes.

SMC has strengthened its balance sheet amid the challenges brought about by the COVID-19 pandemic.

It has committed to help revive the economy through crucial infrastructure projects that can immediately create jobs, stimulate economic activity, and in the long-term pave the way for an inclusive post-pandemic economic recovery.

The Bulacan airport alone is expected to generate hundreds of thousands of jobs during the construction phase alone.

Over the long-term, SMC said the project, to be built at no cost to the government, is seen to solve perennial congestion problems at the country’s primary gateway.

It will initially feature four parallel runways with a provision for two more; a world-class terminal, and an infrastructure network that will include a mass rail system to ensure easy connectivity.

Furthermore, the new airport would be capable of handling up to 100 million passengers per year, is seen to create about 30 million tourism-related jobs, and generate more than a million direct jobs for host province Bulacan and nearby provinces, according to SMC.

SMC, in cooperation with the Technical Education Skills and Development Authority (TESDA), also launched its free livelihood and skills training program for Bulacan residents ahead of the construction of the Bulacan Airport.

SMC president and chief operating officer Ramon S. Ang has said the program for Bulacan residents is meant to help Filipinos adapt to changing demands and benefit from opportunities that will emerge with the construction of the airport project in Bulacan.

“This airport project will be a game-changer, not only in terms of its effect on the economy of Bulacan and the entire Philippines. More importantly, this will change the lives of Bulacan residents even beyond the pandemic. These courses are for free and open to all residents of Bulacan who are willing to learn,” Ang said in a statement.

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