Alliance Global bares two new equity investors

Alliance Global Group Inc., a holding company shaping up into a competitive food and beverage conglomerate, has taken in two new global investors to bring in its arsenal of cash and expertise into the company.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, AGI said two global investment companies – American Growers Corp. and California Growers Investment Inc. – have subscribed to a combined 13.9 percent of the company for P3.22 billion.

American Growers subscribed to P160 million common shares worth P1.84 billion while California Growers subscribed to 120 million shares valued at P1.38 billion. The shares are priced at P11.50 each. All of the shares are issued from the unissued authorized capital stock of AGI at P1 par value.

At the trading floor, AGI was the second most active stock after PLDT with 16.32 percent of the total P1.91 billion turnover, as its price rose 25 centavos to P11.75.

With a P5-billion authorized capital, AGI lists other investments such as its chairman George Yang, the local franchise holder of the McDonald’s fastfood chain; the Singapore-based International Advisory Group; and McKesters of the US.

From a glass manufacturing company when it undertook its initial public offering (IPO) in early 1999, AGI transformed into a holding firm for food and beverage businesses when Yang and the other investors came in later that year.

As part of the company’s restructuring, the AGI board approved the spin-off of a P5-billion fully-owned subsidiary, Alliance Growers Holdings Inc., to "consolidate all of the company’s interest and assets in the food and beverage business."

The company said the new capital infusion will be used to build a modern alcoholic beverage, distilled water and juice production complex in Laguna, one of the most modern of its kind in Asia.

"This is in line with the company’s strategy to expand into a regionally competitive food and beverage conglomerate," AGI said.

Sometime last year, AGI informed the PSE that it has tapped Nomura Singapore Ltd. as financial advisor for a planned listing on the Singapore Stock Exchange.

"The listing on the SGX main board will give AGI access to foreign equity investors who may want to participate in future capital-raising exercises of the company, in line with AGI’s vision to transform itself into a dynamic globally competitive conglomerate," AGI said. – Conrado Diaz Jr.