The consumer-focused conglomerate Alliance Global Group Inc. (AGI) is set to sell P16.2-billion worth of shares in TrillionStars Holdings Inc. (TSI), the backdoor listing vehicle of Emperador Distillers Inc.
A disclosure to the Philippine Stock Exchange (PSE) on Friday showed that AGI priced the offering of 1.8 billion common shares in TSI, which amounts to approximately 12 percent of the total issued shares of TSI.
At the price of P8.98 each share, the offering will raise gross proceeds of P16.2 billion, or about $371 million.
Pursuant to a share subscription agreement between AGI and TSI, approximately P11.2 billion, or $257 million of these gross proceeds will go to TSI to be used to fund the growth of Emperador. TSI will later on be renamed Emperador Inc.
According to AGI, the offering attracted strong interest from a wide range of domestic and international investors, including high-quality institutional investors as well as ultra-high networth investors.
"Emperador will not rest on its laurels. We have aggressive and exciting growth plans and the listing and equity raising will put Emperador in a strong position to execute these plans," Andrew Tan, chairman and chief executive officer of AGI, said.
Tan is also the chairman of TSI.
At the offering price, TSI's market capitalization will be valued at approximately P135 billion, or $3 billion, making it one of the 20 largest listed companies on the Philippine Stock Exchange by market capitalization. The settlement date for the offering is September 25.
Macquarie Capital (Singapore) Pte. Ltd. is the sole global coordinator, sole bookrunner and lead manager for the offering.
Emperador is the largest liquor company in the Philippines and the largest brandy producer in the world.
It was reported several weeks ago that AGI started setting up the stage for the backdoor listing of its distilled liquor business in the PSE via subscription of shares in TSI.
AGI then disclosed that it subscribed to some P15billion shares of TSI among other investors in exchange for Emperador Distillers shares.
As part of the transaction, AGI will transfer and TSI will receive shares of Emperador.