Corporate News

LT Group raises P37.72B in record share sale

Posted on April 17, 2013 02:04:50 PM | BREAKING NEWS

LT GROUP, Inc., the listed conglomerate owned by Lucio C. Tan, has raised P37.72 billion ($960 million) in fresh capital -- dubbed the country’s equity transaction in history -- from the sale and subscription of 1.6 billion shares at P20.50 apiece that was snapped up by several big-name international investors.

“The deal was priced at P20.50 per share -- the top end of the share price range of P18.00 to P20.50. At approximately $920 million, LT Group’s offering is the Philippines’ largest ever IPO (initial public offering) or re-IPO with the largest order book at over $3.5 billion with over 130 investors,” Lauro C. Baja III, managing director at UBS Investments Philippines, Inc., the deal’s financial adviser and sole bookrunner, said in a text message on Wednesday.

Trading of LT Group's shares were suspended from 9 to 12 noon on Wednesday in light of the transaction.

“The transaction was already oversubscribed even before the roadshow. There were 11 world-class, long-term cornerstone investors that committed to subscribe to one billion shares before the official bookbuild -- the first time such a process was ever done in the Philippines,” Mr. Baja noted.

Last April 8, LT Group embarked on an international roadshow ahead of a planned “top-up” equity placement, which will involve majority investor Tangent Holdings Corp. selling LT Group shares, with LT Group subscribing to a same number of similarly-priced common shares.

“The placing and subscription transaction allows the company to raise capital in a most expeditious and efficient manner with the least cost for the company, for the growth and expansion of its subsidiaries,” LT Group said in a disclosure yesterday.

The same disclosure noted that up to 35% of the raised proceeds will go to liquor units Asia Brewery, Inc. and Tanduay Distillers, Inc. as well as property firm Eton Properties Philippines, Inc.; up to 30% will be allotted for Allied Bank; and up to 30% will be earmarked for debt refinancing. The remainder, meanwhile, will be used for “general corporate purposes.”

“Lucio Tan’s debut into the equity capital markets has broken many records in deal making in the Philippines. He has now crystallized the value of the business empire he built in the country and has set the stage for future expansion,” Mr. Baja said of the deal. -- Franz Jonathan G. de la Fuente