San Miguel prices preferred shares at 25% premium
Reuters | 06/15/2009 1:57 PM
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MANILA - Philippine food-to-power conglomerate San Miguel Corp. said on Monday it has priced its preferred shares at a 25 percent premium over its common shares.
San Miguel, which has moved into power distribution and oil refining from its core food and drinks business to feed future growth, last month approved a plan to allow shareholders to swap their common shares with preferred shares to ease concerns about the group's entry into regulated sectors.
The company said the new class of preferreds, called Series 1 preferred shares, will be issued at P75 ($1.56) per share and with a dividend rate of 8 percent per annum.
The price represents a 25 percent premium over the closing prices of San Miguel A and B shares on Monday.
The A-shares, exclusive to Filipinos, rose 7.1 percent to P60 and the B-shares, open to all, jumped 6.2 percent, also to P60. The main index gained 0.54 percent.
Shareholders are to get one preferred share for every common share held. The preferreds are perpetual, cumulative and non-voting.
San Miguel, Southeast Asia's biggest food and beverage group, bought a 27 percent stake in power retailer Manila Electric Co. last year and has an option to buy a majority interest in oil refiner Petron Corp.
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