Tanduay Holdings hikes capital

MANILA, Philippines - Lucio Tan’s Tanduay Holdings Inc. said it plans to increase its authorized capital five times to P25 billion to pave the way for the entry of new investors as it aims to expand globally.

The company’s board of directors has approved the increase in the company’s authorized capital stock to P25 billion from P5 billion.

Its board also approved the subscription of majority stockholder Tangent Holdings Corp. for five billion new shares worth P5 billion. The shares will be listed in the local bourse.

“The company needed to broaden its equity base to solidify its future investment growth,” Tanduay Holdings told the local bourse.

“This move is well in line with the goal of transforming Tanduay into a global brand as it starts to explore the global market,” it added.

Tanduay appointed US-based firms Brand Action Team (BAT), Beacon Distributors and MHW Ltd. as the company’s partners for the global expansion.

“With the professional assistance of these three companies, Tanduay is now laying the groundworks for its foray into the US market and well on its way towards its vision of making Tanduay a global brand,” the firm said.

Alcohol marketing consultancy firm BAT will be responsible for repositioning and marketing Tanduay to appeal to American consumers.

Beacon Distributors will be the sales and distribution specialist that will focus on distributor and key account management.

“Beacon will provide Tanduay with a dedicated sales force necessary for state-by-state representation and management of distributors and key retail accounts where the ultimate goal is to gain the attention and commitment to the Tanduay brand,” the company said.

Meanwhile, logistics and management service provider MHW will handle the administrative, regulatory compliance, transportation, logistics, warehouse, reporting, billing and collection services regarding the importation and distribution of the Tanduay brand into and within the US.

Tanduay’s profit slipped five percent to P196 million in the first quarter compared with a year ago as revenues dropped three percent to P2.8 billion due to lower sales volume.