SEC okays additional share offer of Alliance Global

The Securities and Exchange Commission (SEC) has approved the additional share offering of Alliance Global Group Inc. (AGI), estimated to raise as much as P14.4 billion.

AGI is the listed holding firm of businessman Andrew Tan for his interests in real estate development, fastfood industry and hard liquor.

Based on its registration statement filed with the SEC, the company is selling 1.8 billion primary shares and 1.33 billion secondary shares at a maximum price of P8 each.

AGI has set aside P10 billion this year to build a new alcohol distillery, acquire new brands, expand its glass container production, and repay loans. Of the programmed capital budget, P7 billion will go to the expansion of its alcoholic beverage production lines and working capital requirements of Emperador Distillery Inc.

About P1 billion has been earmarked for acquisitions. Another P1 billion has been set aside for repayment of debt.

AGI operates its food and beverage business mainly through its wholly-owned subsidiary EDI, which sold eight million nine-liter cases of brandy last year or 76 percent of the sales volume of the Philippine brandy market.

EDI markets its brandy under the Emperador Brandy and the Generoso brand names throughout the country and plans to expand its operations in Thailand and China.

Among EDI’s products include Club Valentino Rhum, Collector’s Premium Whisky, Andy Player Special Whisky, and Emperador Brandy.

AGI also has a 46-percent stake in upscale property developer Megaworld Corp. and a 49-percent interest in Golden Arches Development Corp., which oversees the operations of McDonald’s restaurants in the Philippines pursuant to a master franchise agreement between Golden Arches Development Corp. and McDonald’s Corp. USA.

AGI is also 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.