AN AFFILIATE of Singaporean sovereign wealth fund GIC Pte. Ltd. is subscribing to P832.26 million worth of shares in Emperador, Inc.
In a disclosure to the stock exchange on Wednesday, the listed liquor firm said Arran Investment Private Limited will be subscribing to 122.39 million shares in the company with a par value of P1 apiece.
The subscription to Emperador shares will cover the accrued interest due under the equities linked securities agreement between the two parties, the company added.
To recall, GIC through Arran Investment invested P22 billion in Emperador in 2014, through the purchase of common shares and equity-linked securities convertible to common shares of Emperador at P11 per share over a 13-month period. The transaction was valued at P17.6 billion.
In addition, Arran Investment also had an option to buy additional interest of up to P4.4 billion.
The transaction gave Arran Investment an 11.76% stake in Emperador.
The Andrew L. Tan-led firm had earlier said the transaction will give Emperador fresh capital to pursue expansion plans locally and abroad.
Emperador has been on an acquisition spree in 2016, bringing under its helm Scotch whisky maker Whyte and Mackay Group and Bodegas Fundador in Spain. Its brands include Fundador, Dalmore, and Jura.
The company is currently on two-year share buyback program worth P5 billion that started in May, where it aims to increase shareholder value amid positive prospects for the company’s growth.
For the first nine months of the year, Emperador saw its net income attributable to the parent fall by 9.7% to P4.44 billion, as the company saw softer liquor consumption.
Shares in Emperador added 10 centavos or 1.38% to close at P7.35 each at the stock exchange on Wednesday. — Arra B. Francia
