SMC fully unloads stake in Top Frontier

MANILA, Philippines - Diversified conglomerate San Miguel Corp. (SMC) has completed unloading its shares in majority shareholder Top Frontier Investment Holdings Inc.

The transaction paves the way for the listing by introduction of Top Frontier, tentatively scheduled next week.

In a regulatory filing, SMC said the 240.19 million common shares of Top Frontier held by the corporation were already distributed to SMC stockholders as property dividends on Jan 2.

Stockholders received one Top Frontier share for every 10 SMC shares they own as of record date.

SMC’s majority shareholder Top Frontier will debut in the local bourse next week by introduction or without immediately having to sell shares to the public.

Top Frontier’s shares will be listed in the PSE’s Main Board, with an initial listing price at P178 per share, valuing the company at P87.25 billion.

SMC owns 49 percent of Top Frontier which, in turn, owns majority of the diversified conglomerate. The cross-ownership structure allows both parties to block any takeover or entry of hostile entities given each other’s rights to match any offer from potential investors.

Top Frontier is backed by former trade minister Roberto V. Ongpin, businessman Iñigo U. Zobel, condiments king Jose Y. Campos and SMC president Ramon S. Ang.

Top Frontier is the legal and beneficial owner of 1.573 billion common shares in SMC, or approximately 66.1 percent of the outstanding common stock of SMC.