Market summary
The energy and utilities sector made a buzz in December with various announcements and deals. Prime Infrastructure Holdings Inc., said it acquired 50% stake in Solar Philippines Tanauan for c. USD39m. AC Energy Corp made headway for multiple deals including an asset for share swap in its oil and gas exploration unit ACE Enexor, in addition to signing a USD182m share purchase agreement with an affiliate of Singapore-based GIC Private Ltd, while agreeing to subscribe to two subsidiaries for a combined USD273m in separate projects in solar and wind energy development.
Telecommunication and media ended the year with increased activity. Macquarie Capital announced the close of its investment in Phil-Tower Consortium Inc. (PhilTower). On the media side, Paris-headquartered music company Believe has acquired a stake in Philippines-based Viva Music and Artists Group (VMAG), for c. USD26m.
On the real estate side, residential developer Haus Talk, Inc. has set its IPO price at its ceiling of Php1.50 a share. The sector also saw fund flow on the debt side with AREIT, Inc. with a USD58m, 3.0445% bond issue.
Industrials have also seen flows with EEI Corp. raising USD117m from its follow-on offering as the firm exercised its oversubscription option. Ayala Corp. announced that it plans to acquire 20% share in Singapore-based Yoma Strategic Holdings Inc. and 20% stake in First Myanmar Investment Public Co. Ltd., amounting to USD238m. Multiple large firms are also looking to raise from the debt markets with SM Investment Corp. registering for a Php15bn fixed-rate bond offering, while San Miguel Corp. seeks a shelf registration of Php60bn in fixed bonds.
A whale of a transaction to be expected this year with Union Bank of the Philippines inking the deal to buy Citi's local assets for c.USD1,100m. CTS Global Equity Group Inc., plans to raise Php1.375bn through an IPO by February.
Aggregate Deal Value = USD890m
This month’s top deals
Energy
Prime Infrastructure Holdings Inc., a company led by business tycoon Enrique Razon Jr., said Monday it acquired a 50-percent stake in Solar Philippines Tanauan Corp., which is building solar farms in Batangas and Cavite provinces. Prime Infra said in a statement it concluded an agreement with Solar Philippines Power Project Holdings Inc. to acquire a 50-percent interest in Solar Philippines Tanauan.
ThomasLloyd Energy Impact Trust PLC (LON:TLEI) has completed the acquisition of a minority stake in three solar power plants in the Philippines with a combined capacity of 80 MW.
Ayala-led AC Energy Corp. is swapping some of its assets for shares in its oil and gas exploration unit ACE Enexor, Inc. in a deed of assignment that the two entities signed earlier this week. In separate disclosures on Friday, the listed companies said that under the property-for-shares swap, ACE Enexor will issue 339,076,058 of its shares to AC Energy at P10 apiece in exchange for the latter’s five assets.
Aboitiz Power Corp. announced on Friday that it would issue P10 billion out of its P30-billion shelf-registered bonds in the first quarter of next year, subject to market conditions. In a stock exchange disclosure, it said the third tranche of its debt program is comprised of fixed-rate retail bonds including oversubscription
AYALA-LED AC Energy Corp. has agreed to subscribe to the shares of two subsidiaries for a combined P14 billion to fund the units’ separate projects in solar and wind energy development. AC Energy disclosed to the stock exchange on Wednesday its subscription to the shares of Santa Cruz Solar Energy, Inc. (SCSEI) for P6,999,631,590 to give it a 99.99% stake in the subsidiary.
AC ENERGY and Infrastructure Corp. (ACEIC) has signed a P9.33-billion share purchase agreement with an affiliate of Singapore-based GIC Private Ltd. for a 17.5% stake in the former’s subsidiary AC Energy Corp. (ACEN). Ayala Corp. said ACEIC will sell 2,689,521,681 secondary ACEN shares to Arran Investment Pte. Ltd. for P3.4678 apiece.
MANGIMA Hydro Power Corp. (MHPC) on Tuesday said it had inked a P2.4-billion loan agreement with Philippine National Bank (PNB) for the construction of a 12-megawatt (MW) run-of-river hydroelectric power project in Manolo Fortich, Bukidnon.
Article links:
Prime Infra buys 50% of Tanauan solar farm builder
ThomasLloyd Energy buys minority in 80-MW Philippine solar portfolio
ACEN raises investments in solar, wind projects
AC Energy, unit forge asset-for-shares swap deal
AboitizPower to issue P10-B retail bonds
AC Energy subscribes to P14-B shares of solar, wind subsidiaries
AC Energy signs P9-billion share purchase deal with Singapore firm
Bukidnon hydro project secures P2.4-B loan from PNB
Telecommunication & Media
Macquarie Capital, the advisory, capital markets, and principal investment arm of Macquarie Group, announced the financial close of its investment in Phil-Tower Consortium Inc. (PhilTower), one of the fastest-growing independent tower companies in the Philippines. PhilTower is a shared digital infrastructure provider, enabling mobile network operators to rapidly and cost effectively expand their network coverage and meet growing demands for 4G and 5G services.
Paris-headquartered music company Believe has acquired a stake in Philippines-based Viva Music and Artists Group (VMAG), one of the largest labels in South-East Asia. Believe is buying 15% of the company’s total share capital for €23 million (approx. $26m at current exchange rates). The news follows Believe’s acquisition this week of a 76% stake in South India-based Think Music for €13 million (approx. $14.6m at current exchange rates
Converge ICT Solutions Inc. is eyeing to raise P20 billion through the sale of fixed rate bonds through a shelf-registration.The listed fiber broadband provider in a stock exchange filing said its board of directors approved in a special meeting the application for the shelf registration and listing of peso-denominated fixed rate bonds with an aggregate principal amount of P20 billion.
Article links:
Macquarie Capital invests in Phil-Tower Consortium, Inc.
Believe acquires 15% stake in Philippines-Based Viva Music and Artists Group For $26m
Converge pipelines P20 billion bonds for shelf registration
Real Estate
Upscale property developer Arthaland Corp. has raised P516 million from the sale of a 40-percent stake in two real estate subsidiaries to a unit of international real estate fund and asset manager Arch Capital Management Co. Ltd.
AREIT raises P3B from bond issuance
AREIT, Inc. raised P3 billion from its maiden bond issuance, which was also the initial tranche of its P15-billion debt securities program. The P3-billion 3.0445% fixed-rate bonds due in 2023 were listed at the Philippine Dealing & Exchange Corp. (PDEx) on Tuesday.
Haus Talk prices IPO shares at P1.50 apiece
RESIDENTIAL developer Haus Talk, Inc. has priced its initial public offering (IPO) shares at its ceiling of P1.50 apiece, the company said in a letter to the exchange on Wednesday. “This may be a sign of optimism, given the better market sentiment amid the COVID-19 (coronavirus disease 2019) cases in the country remaining low over the past few weeks,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message. With the P1.50 per share price tag, the company may raise up to P750 million from the sale of 500 million primary common shares
DISCOVERY World Corp.’s (DWC) executive committee has given the go signal for an investment in British Virgin Islands-registered firm True Ally Ventures Ltd., which will be the vehicle for its foray into cryptocurrency and non-fungible token (NFT). In a disclosure to the exchange on Friday, Discovery World bared its plans to invest P4.2 million for a 70% stake in True Ally. The balance will be owned by a local partner, information technology company Safegate Solutions, Inc.
Century Properties Group, Inc. has approved a P6-billion debt securities program, of which half of the amount will make up the first tranche including an oversubscription option. The property developer and manager told the stock exchange on Friday that the initial tranche of its debt program would be a a five-year fixed rate of retail bonds with a principal amount of P2 billion and an oversubscription option of up to P1 billion.
MREIT, Inc. is acquiring four “prime, grade A buildings” registered in economic zones for P9.12 billion, the company said in a statement on Thursday. MREIT is the real estate investment trust (REIT) sponsored by Megaworld Corp. MREIT’s board of directors has approved to acquire four assets that will increase its property value by 19% to P58.5 billion.
PRIMEX Development Corp. sold two hectares of its eight-hectare property in Naic, Cavite to community mall developer Walter Mart for P200 million, the company said in a statement on Thursday. Primex Development is a 42.86% owned unit of listed property firm Primex Corp.
Article links:
Arthaland sells 40% stake in 2 real estate subsidiaries
AREIT raises P3B from bond issuance
Haus Talk prices IPO shares at P1.50 apiece
Discovery World acquires 70% stake in True Ally
Century Properties board clears P6-B debt program
MREIT to acquire 4 Megaworld assets for P9B
Primex unit sells Cavite lot to Walter Mart for P200M
Industrials & Manufacturing
EEI CORP. raised P6 billion from its follow-on offering as listed construction firm exercised its oversubscription option following strong demand from investors. In a statement on Wednesday, the company said its preferred shares offering saw an oversubscription of 4.85 times its P4-billion base offer. Its sole issue manager, RCBC Capital Corp., said the offer attracted both institutional and retail investors
Conglomerate San Miguel Corp. (SMC) plans to sell as much as P60 billion worth of local debt paper to fund big-ticket projects within the next three years, but half of the amount may be raised sooner rather than later. In a disclosure to the Philippine Stock Exchange on Tuesday, SMC said it had filed with the Securities and Exchange Commission (SEC) a registration statement and preliminary prospectus for the shelf registration of fixed bonds amounting to P60 billion.
Kersia Group (Kersia), a global leader in food safety, has expressed interest to buy a major stake in homegrown hygiene and sanitation company Kalinisan Chemicals Corp. (Kalinisan). Kersia is grooming Kalinisan to be a key pillar in its Southeast Asia strategy for complementary global best practice in “Farm to Fork” food hygiene. The new partnership plans to harness each firm’s great potential for positive synergies. Both have geographical, business, industrial and innovation
Acclime, the premier corporate services provider in Asia, announces today that it has completed the acquisition of DocSpark Solutions in the Philippines. This move represents the latest step in Acclime's active growth as the Asia specialist in providing compliance and corporate services throughout the region. Acclime's service provision now covers 10 territories across Asia-Pacific, with client support centres in the US, UK and Netherlands. Acclime boasts local corporate services expertise in 20 offices in Asia, with a total headcount of over 700.
APEX MINING Co., Inc. said on Wednesday that it received a letter from Prime Strategic Holdings, Inc. about its newspaper notice to make a mandatory tender offer for the listed mining company’s shares at a price of P1.30 per apiece. In a disclosure, Apex Mining received the tender offer report from Prime Strategic Holdings to acquire up to 2,213,358,981 common shares through a tender offer to all shareholders.
Ayala Corp. announced on Friday its plan to acquire a 20% share in Singapore-based Yoma Strategic Holdings Inc. (YSH) and a 20% stake in First Myanmar Investment Public Co. Ltd. (FMI). The total investment amounts to $237.5 million, the listed conglomerate said in a stock exchange disclosure.
PAL Holdings, Inc. has filed an application with the Securities and Exchange Commission (SEC) for a capital increase to P30 billion and an amendment to its articles of incorporation. The holding company of Philippine Airlines said in a stock exchange disclosure on Friday that it filed an application with the SEC on Dec. 29 to amend its seventh article of incorporation and increase its capital stock to P30 billion divided into 30 billion common shares at P1 per share.
THE Securities and Exchange Commission (SEC) said it received on Wednesday the registration statement of SM Investments Corp. (SMIC) for a P15-billion fixed-rate bond offering. SMIC is planning to offer P10-billion fixed-rate bonds with a P5-billion oversubscription option. The offer will consist of Series I bonds due in 2025 and Series J Bonds due in 2027.
Article links:
EEI completes follow-on offering, raises P6 billion
SMC seeks shelf registration of P 60B in fixed bonds
Kersia Group eyeing majority of Kalinisan
Acclime consolidates Philippines presence with DocSpark Solutions acquisition
Prime Strategic Holdings makes tender offer for Apex Mining shares
Ayala eyes stake in Singapore, Myanmar firms for $237.5M
PAL Holdings seeks SEC nod on capital hike to P30B
SMIC registers P15-billion fixed-rate bonds
Agriculture
Vitarich Corp. has reached an agreement to acquire Barbatos Ventures Corp. (BVC) from Luzon Agriventure Inc. as part of what the listed company called its “vertical integration strategy.” In a stock exchange disclosure on Friday, Vitarich said the acquisition of 100% of the outstanding stock of BVC was for a price of P1.00, with the board of directors of the transacting parties approving the deal.
Article links:
Vitarich reaches deal to acquire Barbatos
Retail & F&B
Shakey's Gobbles Up Potato Corner
Christmas came a couple of days early for two of the country’s biggest food businesses. On Friday (December 24), listed Shakey’s Pizza Asia Ventures Inc. (PSE: PIZZA) announced that it is acquiring food kiosk brand Potato Corner in an asset purchase agreement (APA) signed on Thursday (December 23).
FRUITAS HOLDINGS, Inc.’s wholly owned subsidiary Balai ni Fruitas, Inc. is looking to tap the stock market with a P309-million initial public offering (IPO), subject to regulatory approvals and market conditions. In a statement on Monday, Fruitas Holdings said Balai ni Fruitas’ IPO aims to raise funds for the subsidiary’s store network expansion, commissary setup, and for future acquisitions.
DEL MONTE Pacific Ltd. (DMPL) said it will be issuing $90-million senior fixed-rate notes. The “approval in-principle has been received” for the notes’ listing on the Singapore Exchange Securities Trading Ltd, the listed company said.
Article links:
Shakey's Gobbles Up Potato Corner
Fruitas Holdings eyes P309-M IPO for Balai subsidiary
Del Monte Pacific to issue $90-M senior fixed-rate notes
Financial Services
CTS Global Equity Group Inc., one of the country’s largest global equity trading firms, plans to raise as much as P1.375 billion from an initial public offering (IPO) by February next year, targeting investors seeking a diversified position across stock markets in multiple jurisdictions.
San Miguel Corp. (SMC) affiliate Bank of Commerce is eyeing to raise as much as P4.03 billion through an initial public offering (IPO) by March next year. In an e-mail on Thursday, the Securities and Exchange Commission (SEC) said it received the bank’s registration statement for its IPO on Dec. 7. The bank is eyeing to offer 280,602,800 common shares for up to P12.50 apiece, with an overallotment option of up to 42,090,400 common shares.
Aboitiz-led Union Bank of the Philippines has inked a P55-billion “game-changing” deal to buy about a quarter of American banking giant Citi’s local assets, jacking up potential earnings from the high-margin consumer banking segments and boosting its rank among banking peers.
Article links:
Global equity trading firm CTS sets P 1.37-B listing
SMC’s Bank of Commerce plans P4-billion IPO
UnionBank buys Citi’s PH consumer banking assets for P55B
Technology
DFNN, the listed gaming technology firm, is doing a stock rights offering to provide additional capital for its planned expansion. In a disclosure to the Philippine Stock Exchange (PSE) yesterday, DFNN said it is proceeding with its stocks rights offering via an increase in its authorized capital stock to P1 billion. The new capital consists of 900 common shares with a par value of P1 per share; and 100 million preferred shares with a par value of P1 per share.
FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, today announced that it has acquired resale platform LUXCLUSIF for an undisclosed sum. The acquisition includes LUXCLUSIF’s technology platform, and the LUXCLUSIF team will join FARFETCH group.
Article links:
DFNN to hold stock rights offering
Farfetch Limited (FTCH) Acquires LUXCLUSIF
Others
AcadArena, a startup that builds student gaming communities across the Philippines, has secured US$3.5 million (PHP176M) in a seed funding round. Over 50 investors from prominent businesses worldwide participated in the seed round. They include 1KX (a community and token fund), Hashed (Korean Blockchain VC firm), Kevin Lin (co-founder of Twitch), Holly Liu (co-founder of Kabam), Patrick Lee (co-founder of Rotten Tomatoes), Kun Gao (co-founder of Crunchyroll), Jeffrey “Jihoz” Zirlin (co-founder of Sky Mavis, which owns Axie Infinity), and Yat Siu (co-founder of Animoca Brands).
Article links:
AcadArena nets US$3.5M to build student gaming communities in Philippines
Note: Deal values only include disclosed completed deals with amounts restricted to local scene i.e. amounts related to the Philippine entity and/or business. Rumored, announced, or planned deals not included. Cross-posted deals are also adjusted to avoid double count.
*USD 1.00 = PHP51.33 as of 01/07/2021