MANILA— San Miguel Corp. said on Wednesday it was confident of attracting investors to buy up to a $2.7 billion stake in its food and beverage unit, the Philippines‘ biggest secondary share offering.
The sale of up to 1.02 billion shares in San Miguel Food and Beverage Inc is part of the parent firm’s asset restructuring plan announced last year.
The feedback from investor roadshows in Asia, Europe and the United States has been positive, San Miguel Corp President Ramon Ang said after the subsidiary’s shareholder meeting in Manila.
“Investors want a stable company with stable cash flow, with big market shares in the food and beverage category,” Ang told reporters.
“We are confident we can place out the shares” despite recent volatility in the Philippines‘ equities market, he added.
Philippine shares fell for a sixth straight session on Wednesday as investors worried over U.S.-China trade tensions.
Manila’s main index is down more than 12 percent this year, the worst-performing bourse in Southeast Asia.
San Miguel Food and Beverage has set a date of Oct. 23-29 for the share sale, pending regulatory approval. Final pricing is set for Oct. 19.
San Miguel intends to use fresh capital from the share sale for infrastructure projects, including a proposed $15 billion airport complex north of the capital Manila.
“The priority is that funds that will be raised by San Miguel will be used for investments in the Philippines,” Ang said. -Reporting by Neil Jerome Morales; writing by Enrico dela Cruz; editing by Darren Schuettler
