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Philippines Newsletter - April 2022



Market summary


  • Deal activity was relatively strong with over c. USD2.5b worth of transactions, with multiple USD100m+ deals.

  • The Telecommunication & Media sector had the highest deal value due to PLDT’s sale and leaseback of their 5,000+ towers.

  • The Financial Services industry on the other hand, had the largest deal count which included CTS Global Equity Group’s USD26m IPO, Voyager’s (PayMaya) USD210m fundraise, and GoTo’s sale of coins.ph, to name a few.

  • Other notable industries this month include Energy & Utilities, with an aggregate deal vale of c. USD533m, and Real Estate, with an aggregate deal value of c. USD277m.

Aggregate Deals Value: USD2,586m

 

This month’s top deals


Energy & Utilities

On 1 April, 2022, the Board of Directors of SM Investments Corporation (SMIC) approved the acquisition of the 81% stake from related parties in Allfirst Equity Holdings Inc (Allfirst) in exchange for shares in SMIC, subject to valuation confirmation by an independent appraiser. Allfirst is the holding company for Philippine Geothermal Production Company, Inc. (PGPC), which operates the Tiwi and Mak-Ban steam fields. Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia, followed by Mak-Ban, both in operation since 1979. Together they generate geothermal steam sufficient to produce approximately 300 MW of electricity.

AC Energy Corp. (ACEN) said on Tuesday that its board had approved the Ayala-led energy platform’s plan to seek opportunities in the renewable energy market of the United States. “Our aspiration is for the US to become a priority market for ACEN outside of Philippines over time” Patrice Clausse, president and chief operating officer of ACEN’s international business, said in a stock exchange disclosure. The US entry is through a partnership with UPC Solar & Wind Investments LLC and Pivot Power Management (PPM), the Ayala group’s energy arm said.

Synergy Grid & Development Phils., Inc. is set to gain 9.241% direct control over the country’s privately owned power transmission operator, National Grid Corporation of the Philippines (NGCP), apart from its indirect ownership stake.

Articles links:


Telecommunication & Media

PLDT Inc. clinched a landmark P77 billion sale and leaseback agreement for its 5,907 telecom towers on Tuesday as it seeks to cut its debts while pushing for better connectivity for customers. The transaction, which is deemed as the biggest purchase of assets in the Philippines by foreign investors, would allow PLDT to sell the cell sites to tower companies—edotco Group unit ISOC edotco Towers Inc. and EdgePoint subsidiary Comworks Infratech Corp.—and then rent them for 10 years.

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Real Estate

Filinvest Land, Inc. said on Tuesday that it approved the offer and issuance of bonds worth P11.9 billion for the third and final tranche of its P30 billion shelf-registered debt securities. The board approved the offer and issuance of up to P8 billion worth of fixed-rate peso denominated retail bonds with an oversubscription option of up to P3.9 billion, with maturity periods ranging from three to five years.

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Agriculture & Food

Rice producer SL Agritech Corp. announced that it became the country’s first private corporation issuer of a social finance instrument worth P2 billion. “DNV made a second party opinion assuring [the] fund will enable us to raise capital for a project that has ‘social’ benefits. The funds will be drawn in one or more tranches over three years,” SL Agritech said in a statement.

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Transportation & Logistics

FINANCE Secretary Carlos G. Dominguez III described the acquisition by US private equity firm Cerberus Capital Management of the former Hanjin Heavy Industries and Construction (HHIC-Phil) shipyard in Subic Bay as a “win-win.” The acquisition is expected to create more jobs, stimulate the economy, and serve both military and private sector needs, Mr. Dominguez said in an e-mailed statement.

Article link:

Cerberus deal on Hanjin seen to strengthen US-PHL alliance


Financial Services

AYALA Corp. said its subsidiary AYC Finance Ltd. had made a tender offer to purchase for cash its outstanding notes worth USD300 million to manage its liabilities. Debt issuer AYC Finance’s undated notes with a rate of 5.125% is guaranteed by Ayala Corp. up to a tender cap of USD100 million subject to its discretion.

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Note: Deal values only include disclosed completed deals with amounts restricted to local scene i.e. amounts related to the Philippine entity and/or business. Rumored, announced, or planned deals not included. Cross-posted deals are also adjusted to avoid double count.

*Exchange rate: USD 1.00 = PHP52.43

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