Emperador lists via backdoor

MANILA, Philippines - The liquor unit of consumer-focused conglomerate Alliance Global Group Inc. (AGI) is going public through the backdoor listing of its shares.

Thus, Emperador Distillers Inc. will become the fifth publicly-traded firm of property tycoon Andrew L. Tan, the company said in a disclosure.

“AGI, among other investors, and Touch Solutions Inc. (TSI) have agreed that the investors will subscribe to an aggregate of up to 15 billion shares of TSI at par value, to be issued out of the proposed increase in the authorized capital stock of TSI,” AGI  said.

“As part of the transaction, AGI will transfer, and TSI will receive, shares of Emperador Distillers,” it added.

Early this week, the board of directors of TSI approved several measures in line with its transformation. Its authorized capital stock will hence increase to P20 billion divided into 20 billion shares from the current P100 million.

With the transaction, AGI executives took over the management of TSI. Specifically, Andrew L. Tan was elected chairman Winston S. Co as president, Katherine L. Tan as treasurer, Dominic V. Isberto as corporate secretary, Rolando D. Siatela as assistant corporate secretary and Dina D. Inting as compliance officer.

The new board of directors of the systems software and services firm also approved the change in name of TSI to Emperador Inc.

Emperador Distillers said it will secure stockholders’ approval for the change in corporate name.

TSI shares were suspended from trading yesterday while stocks of AGI jumped 6.02 percent or P1.40 to P24.65 apiece.

The backdoor listing will usher in the entry of a new Tan-led company in the local bourse. AGI and property developers Megaworld Corp., Suntrust Home Developers Inc. and Empire East Land Holdings Inc. are already public firms.

Early this month, Emperador Distillers committed to invest P5.8 billion in Spain as part of its plan to become a significant global brand. It earlier acquired 100 percent of Spanish brandy maker Bodega San Bruno, including the San Bruno trademark that has been registered since 1942.

For the next phase of Emperador Distillers’ investment in Spain, the brandy maker will acquire more vineyards and other brandy production facilities, which include distilling and bottling plants.

Emperador Distillers targets to double its sales volume in the next five years as it intends to corner a third of the global brandy market. The liquor maker sold 31 million cases of brandy last year.

TSI, for its part, was previously controlled by Shiok Success International Ltd., a wholly-owned company of Singapore-based Capilion Corporation Pte. Ltd. that planned to manage and operate its Philippine businesses through TSI.