Alsons Consolidated eyes $175M from secondary share offer

MANILA, Philippines - Alcantara-led power and property group Alsons Consolidated Resources Inc. plans to raise $175 million (about P7.5 billion) through a secondary offering of common shares.

In a disclosure to the Philippine Stock Exchange, ACR said it will explore fund-raising initiatives to support the expansion of its Sarangani and Zamboanga power generation projects.

ACR said its major shareholders - Alsons Corp. and Alsons Development & Investment Corp. - would sell a portion of their shares primarily to offshore investors.

Other shares will be sold to domestic investors through a private placement.

CLSA Ltd. was appointed sole global coordinator and bookrunner for the share sale.

ACR said the issue size and offer price would be determined following a book-building exercise.

The stock was the third top gainer yesterday, rising 7.46 percent to close at P1.44 each share. A total of 6.76 million shares valued at P9.64 billion changed hands.

The company also disclosed that it approved the direct ownership of Sarangani Energy Corp., presently owned by a subsidiary, to be used as the corporate vehicle to own and operate the new power plant.

It also approved the direct ownership of Kamanga Agro-Industrial Ecozone Development Corp. which will own and operate the Kamanga agro-industrial ecozone where the power plant will be located.

Moreover, the company’s board approved a dividend policy that 20 percent of the previous year’s unappropriated net income will be made available for regular dividends.

ACR reported a 35 percent growth in net income last year to P375.7 million as revenues increased to P2.71 billion on the strength of higher energy fees from its two power subsidiaries supplying electricity to the Mindanao grid.

Higher consumption of electricity and water by the locators in the Lima Technology Center in Lipa, Batangas likewise contributed to the growth in revenues. 

Earnings per share went up to P0.06 as against P.044 a year earlier.

ACR chairman Tomas Alcantara is optimistic the company will sustain its revenues and income this year on improving contributions from its power subsidiaries.