Ginebra San Miguel, Inc.
Posted on May 10, 2012 10:40:52 PM

Ginebra panders to demand for lighter booze

LIQUOR PRODUCER Ginebra San Miguel, Inc. likely swung to profit in the first quarter from a loss a year ago, officials yesterday said, with growth seen to be sustained till year-end via new, weaker drinks increasingly preferred by the market.
the key to trading success is to focus on how much money is at risk, not how much money you can make.

trading is simple, but it's not easy. if you want to stay in the business, leave hope at the door, focus on specific setups, and stick to your stops.
is it only me or may iba pang nakapansin ng unusual movement dito sa stock na ito? SmileninjaCool
it is just you. Big Grin
buy high, sell higher!

stock market abbreviations (for newbies)

"when it comes to trading, i'm just barely smart enough to realize that i'm a total idiot. i might be considered stupid, but on the intelligence scale, it puts me comfortably ahead of all the dumber people who thinks they're better than me."

(05-16-2013, 12:36 AM)glenchuy Wrote: it is just you. Big Grin

oh my Big Grin
(05-16-2013, 12:36 AM)glenchuy Wrote: it is just you. Big Grin

Breakout kaya beeeeehhhhh
Tagay pa! Tonguenut
“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”
magkano ang potensyal na masingil ni ginebra?
tapos na ba play dito ?
...huge gains after announcement

SMC consolidates beverage businesses under Pure Foods

SAN MIGUEL CORP. (SMC) is consolidating its beverage businesses under San Miguel Pure Foods Company, Inc. (SMPFC) through a P336.35-billion share swap deal.

In a disclosure to the stock exchange on Monday, the diversified conglomerate’s wholly owned subsidiary SMPFC said its board of directors approved in a meeting last Nov. 3 the change in its corporate name to San Miguel Food and Beverage, Inc.

The move is in line with the transfer of SMC’s liquor and brewery businesses, through Ginebra San Miguel, Inc. (GSMI) and San Miguel Brewery, Inc. (SMB), under the umbrella of SMPFC, whose businesses include feeds, poultry, fresh meat, milling, and branded food such as Purefoods canned goods, Magnolia ice cream and San Mig Coffee.

The company said its primary business, as stated in its articles of incorporation, will also be changed to include its alcoholic and non-alcoholic beverage business.

For the transaction, SMC will be subscribing to 4.242 billion common shares with a par value of P1 each in SMPFC. This will be taken from an increase in SMPFC’s authorized capital stock by P9.54 billion, divided into 9.54 billion common shares with a par value of P1 each.

SMPFC’s current authorized capital stock stands at 2.06 billion common shares with a par value of P1, plus 40 million preferred shares with a par value of P10 each. Once the company secures approval from the Securities and Exchange Commission (SEC) for the increase, it will have an authorized capital stock of P12 billion, split into 11.6 billion common shares at P1 each and 40 million preferred shares with a par value of P10 per share.

SMC’s subscription to new shares is valued at P336.35 billion, according to the independent expert report of the transaction’s adviser, ING Bank N.V.

In turn, SMPFC will be acquiring P336.35 billion worth of SMC’s shares in both GSMI and SMB as payment for the transaction. This consists of 7.859 billion common shares in SMB and 216.97 million common shares in GSMI.

SMPFC noted the new shares will also be listed at the Philippine Stock Exchange, following approval from both the bourse and the SEC.

As a result of the transaction, SMC, SMPFC, and GSMI all went under a one-hour voluntary trading halt on Nov. 6 to allow investors to digest the material information.

SMPFC will be holding a special stockholders’ meeting on Jan. 18, 2018 to secure approval from its shareholders to amend its articles of incorporation.

Following the announcement, shares in SMPFC soared by 50% or P154 after Monday’s trading to P462 each, while shares in SMC added P5.50 or 5.43% to P106.80 each.

Asked how the move will affect both companies, PNB Securities Inc. President Manuel Antonio G. Lisbona said it represents a realignment of SMC’s portfolio.

“The move represents a realignment of SMC’s portfolio, resulting in (SMPFC) now being a food and beverage company and the latter may now focus on its infrastructure business,” Mr. Lisbona said in a text message.

For his part, Timson Securities, Inc. equity trader Jervin S. de Celis said this is a strategic move by SMC to capture opportunities in the consumer sector.

“SMC is a very diversified firm and they are tapping the growth in the consumer sector by combining its companies in the same industry which will unlock more economic benefits for the company and may further improve their financial performance especially when the tax reform gets implemented,” Mr. Celis said.

Meanwhile, SMC will be asking the Bureau of Internal Revenue for a tax free ruling on the share swap, as well as a non-application from the Philippine Competition Commission for its approval to proceed with the transaction.

“On the face of it, the move provides value to (SMPFC) and its effects on SMC will be minimal, since it owns (SMPFC), SMB, and GSMI. The next hurdle will be to obtain a tax-free ruling on the share swap as well as a green light from the Philippine Competition Commission,” Mr. Lisbona said.


SMC food unit to conduct follow-on offering by Q2

SAN MIGUEL Food and Beverage, Inc. (SMFBI) looks to conduct a follow-on offering by the second quarter of 2018 in order to meet the minimum public float of 15%.

Diversified conglomerate San Miguel Corp. (SMC) is currently consolidating its food and beverage businesses Ginebra San Miguel, Inc. (GSMI) and San Miguel Brewery, Inc. (SMB) under San Miguel Pure Foods Company, Inc. (SMPF), which is being renamed SMFBI.

After the consolidation, SMFBI will have a public float of 4.3%, way below the current floor of 15% for listed companies.

“The company is targeting 15% which is the minimum requirement. And then we will decide later on if there is an additional follow-on (offering) that is needed,” SMPF President Francisco S. Alejo III said during a special shareholders’ meeting in Mandaluyong City on Thursday.

SMC Chief Finance Officer Ferdinand K. Constantino said they look to attract a combination of foreign, institutional, and domestic investors for the issuance.

Mr. Constantino noted the surviving company can book up to P245 billion in revenues this year,  with P120 billion coming from food, P100 billion from beer, and the remaining P25 billion from GSMI.

On the other hand, SMPF secured shareholder approval for various transactions relating to the consolidation of SMC’s businesses during the special stockholders’ meeting. Among these are the changes in SMPF’s corporate name to SMFBI and the change in its primary purpose to include the operations of the liquor and brewery businesses.

Shareholders also approved SMPF’s acquisition of SMB and GSMI from SMC through a share swap transaction, valued at P336.35 billion for a total of 7.86 billion common shares in SMB and 216.97 million common shares in GSMI.

“The company will issue 4,242,549,130 common shares to SMC valued at P79.28 per share, totaling P336, 349,294,992.60,” SMPF said in a presentation.

The shares resulting from the share swap transaction will also be listed at the PSE.

The company has also been given the go-signal to conduct a tender offer for SMB and GSMI shares held by its minority shareholders. This move, however, will only be done if the Securities and Exchange Commission requires the company to do so.

Mr. Constantino said the consolidation of SMC’s traditional businesses will provide value proposition to investors, as it can be used as a gauge for the country’s food and beverage sector.

“It will be attractive to investors, because there is no other food and beverage company in the Philippines. It will be a good proxy for the Philippine environment… Malaki value nun (The value is significant), because there’s a big demand for that,” Mr. Constantino told reporters in a briefing after the special shareholders’ meeting.



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