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Andrew Tan sells stake for P7.8b

By Jenniffer B. Austria | Jul. 12, 2014 at 12:01am [ ]

Tycoon Andrew Tan has raised P7.78 billion from the sale of his 2.7-percent direct stake in listed holding firm Alliance Global Group Inc.

Alliance Global said in a disclosure to the stock said Tan, the company’s president and chief executive, sold 278 million shares through an accelerated overnight equity placement at a price of P28.30 apiece.

“The transaction was conducted in response to a reverse enquiry from one of the largest asset managers globally,” Alliance Global said.

Reverse enquiry is a process in which investors approach banks or issuers with specific details of securities tailored to their specific requirements. UBS AG acted as sole placement agent for the transaction.

Tan will still hold 63.684 million direct shares in Alliance Global after the sale.  The sale price of P28.30 per share represents a five-percent discount to the stock’s closing price of P29.80 Thursday.

Share price of Alliance Global declined 3.7 percent Friday to P28.70 apiece.

Alliance Global, through subsidiaries, has investments in real estate, liquor, gaming and integrated tourism resort development and quick service restaurant businesses.

Major subsidiaries include Emperador Distillers Inc., Anglo Watsons Glass Inc., Megaworld Corp., Travellers International Hotel Group Inc. and Golden Arches Development Corp.

Alliance Global posted a net income of P3.94 billion in the first quarter of the year, up 10.6 percent from P3.56 billion year-on-year, on the strong performance of property, liquor and gaming businesses.

First-quarter consolidated revenues inched up 3.2 percent to P31.23 billion from a year- ago level of P30.26 billion.

The company’s businesses are expected to sustain their growth trajectory in 2014, capitalizing on the strong and positive growth of the domestic economy.

Alliance Global had consolidated total assets of P336.4 billion as of end-March 2014, slightly higher than P332 billion at the beginning of the year.

Cash and cash equivalents, however, dipped 9 percent to P86.4 billion from P95 billion at the beginning of the year, mainly due to Travellers’ loan payments of P4.3 billion, the $3.2-million Emperador’s investment in a Spanish associate, and Megaworld’s capital expenditure and business expansion activities.

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