Quick Take: AgriNurture's plans and 2 more market updates
AgriNurture [ANI 7.20 0.3%] [link] revealed plans to raise P280 million through a P1.00/share stock rights offering (SRO), which ANI expects to sell at a ratio of one SRO share for every 2.5 existing ANI shares owned. ANI also plans to sell $50 million (P2.7 billion) in green bonds, which was a plan that has been delayed by COVID-19. ANI’s owner, Antonio Tiu, said that the SRO raise would be a part of a larger raise of some P5 billion that will be needed to fund ANI’s ambitious expansion plans.
MB Quick Take: I’ll be honest with you in that I have no idea what to make of any of Mr. Tiu’s plans. His companies are normally part of a cohort that I just don’t mess with. He operates a constellation of related parties that he uses to flip cash, assets, and debt around quite quickly. Some of them are public. Others are private. Sure, he’s resigned from some of the other companies that he’s involved in to “focus” on ANI, but there’s enough history here for me to operate on a “wait and see” basis.
Megawide [MWIDE 3.92 0.5%] [link] had its P1.5 billion preferred shares issuance approved by the SEC. The Series 5 preferred shares will be sold at P100/share, and will be listed on the Main Board of the PSE. MWIDE plans to use the proceeds to “partially fund the full redemption of the company’s outstanding preferred shares.”
MB Quick Take: The tentative dates for the offer period were from March 13 through March 21, with a listing date of March 31. It’s not clear if those dates will stand, or if they’ll need to shift. Either way, I’m curious to see the yield that they’ll pay considering where riskless rates are these days.
Union Bank [UBP 0.98] [link] board of directors approved a massive increase in UBP’s authorized capital stock (ACS) to “support growth and for general corporate purposes.” UBP plans to raise its ACS by P25 billion, divided into 5 billion common shares at P10.00/share, and 100 million preferred shares at P100.00/share. UBP completed a P12 billion SRO earlier this month.
MB Quick Take: Keep in mind that this announcement is only about raising the bank’s authorized capital stock. They haven’t even talked about how they plan to sell the shares yet. The only thing we know is that a raise in ACS needs to be “funded”, with at least 25% of that raise “paid for”. Here, that would mean some kind of transaction that accounts for around P6.25 billion. Will it be another SRO? A follow-on offering? A private placement? Or will UBP look to use shares to acquire other bank assets or even other banks entirely?
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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