Alliance Global buys 3rd largest liquor firm in RP

Alliance Global Group Inc. (AGI), a listed investment holding firm controlled by businessman George Yang, has approved the acquisition of 100 percent of rhum maker Emperador Distillers Inc. and a 25- percent stake in upscale property developer Megaworld Inc. for P20 billion.

Both Emperador Distillers and Megaworld are owned by industrialist Andrew Tan, who also holds a stake in AGI.

In a disclosure to the Philippine Stock Exchange (PSE), AGI said it is acquiring Emperador Distillers, the third largest liquor manufacturing company in the country, for P3 billion in cash by way of purchase of all its common shares. Upon completion of purchase, Emperador Distillers will become a wholly-owned subsidiary of AGI.

AGI will also acquire a total of 5.25 billion common shares of Megaworld, representing 25 percent of the company’s outstanding equity in exchange for 4.06 billion common shares of AGI to be taken from its unissued shares.beginning Monday, Feb. 19 until the company complies with all reportorial requirements.

Emperador Distillers, the country’s third largest liquor firm, recently raised its capital to P2 billion from only P10 million. Among its products include Club Valentino Rhum, Collector’s Premium Whisky, Andy Player Special Whisky, and Emperador Brandy.

The company competes with Ginebra San Miguel, the hard liquor unit of Southeast Asia’s biggest conglomerate San Miguel Corp., and taipan Lucio Tan’s Tanduay Rhum.

Megaworld, on the other hand, is a master developer of large-scale projects set in prime locations in Metro Manila. Among these projects include Eastwood City in Libis, Quezon City, Forbes Town Center in Makati, Mckinley Hill, Newport City in Pasay City and Manhattan Garden City at the Araneta Center in Quezon City.

AGI has interests in food (McDonalds), property development and glass manufacturing. It is a joint venture partner of the Bases Conversion Development Authority and Megaworld in the Mckinley Hill mixed-use project in Fort Bonifacio.

The holding firm is the exclusive distributor of Campbell Soup Co.’s products and E&J Gallo Winery Inc. wines in the Philippines. It also handles the international marketing of McKester PikNik International Ltd.’s food products.

AGI is planning to raise P3.3 billion from a stock rights offering to fund the expansion of McDonalds and other businesses.