AGI to raise P26.7 billion from issuance of warrants
AGI is ramping up capital spending after seeing its bottom line drop.
MANILA, Philippines — Alliance Global Group Inc. (AGI) plans to raise at least P26.7 billion from the issuance of warrants to shareholders, mainly to repay existing debt and fund operational expenses.
The company led by billionaire Andrew Tan said in a regulatory filing on Wednesday the warrants would cover up to 2.23 billion underlying common shares at a minimum price of P12 each.
The warrants are not actual shares. If an eligible shareholder purchases a warrant, this gives them the right to buy more AGI shares in the future at a specific price.
AGI has yet to determine the number of warrants it plans to issue, as well as the entitlement ratio, which will indicate how many warrants each shareholder will receive per share they already own.
This is likewise subject to the approval of its stockholders, the Securities and Exchange Commission and the Philippine Stock Exchange.
“The proceeds of the offer will be used to finance capital expenditures, repayment of debt obligations, general corporate purposes and transaction costs,” AGI said in its disclosure.
It added that eligible shareholders would have the opportunity to maintain their ownership ratio prior to the issuance of the warrants.
Capital outlays
This year, AGI will set aside P63 billion in capital expenditures, mostly to expand Megaworld Corp., its main income driver.
READ: Alliance Global sets P63-billion capex for 2025
It can be noted that this is 7.4 percent lower than AGI’s P68 billion spending last year after the group had posted lower profit.
Broken down, Megaworld will get P50 billion from the budget pie to launch new projects, including 139,000 square meters of office space.
Travellers International Hotel Group Inc., meanwhile, will get P5 billion to expand existing projects, namely Boracay Newcoast in Aklan province, Mactan Newtown in Cebu province and the newly opened Westside City in Parañaque City.
READ: AGI aims to start $400-M Cebu casino in 2025
Emperador Inc. will spend around P4 billion to support the expansion of its Invergordon Distillery in Scotland.
Lastly, Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines, will get around P5 billion to put up 65 new branches across the country.
