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Philippines Newsletter - April 2024



Market summary


  • The Industrial sector saw a significant increase in deal volume during the month, largely driven by the acquisition of Cemex Asian South East Corp (CASEC), the parent company of Cemex Philippines. This acquisition, valued at USD305.6m (~PHP17.6b), was spearheaded by DMCI Holdings and Semirara Mining and Power.

  • Four local firms in Energy, Real Estate, Industrials, and Financial Services plan have planned for IPOs. Oceana Gold Philippines, Inc. targets May 2024, Nexgen Energy Corp. aims for July 2024, and Asialink Finance Corp. eyes 2028 on the Philippine Stock Exchange. Additionally, Hotel 101 Global Pte. Ltd. plans an IPO on the Nasdaq Stock Exchange with a valuation of over USD2.3b, expected to close in the second half of 2024.


*Aggregate Deal Values = c. USD565.9m

 

This month’s top deals


Energy & Utilities

Leviste-led Solar Philippines Power Project Holdings, Inc. and its partner in Indonesia have signed a USD14 million (P792 million) loan deal for a 25-megawatt (MW) solar farm project in East Bali. PT Medcosolar Bali Timur, Solar Philippines’ joint venture with Indonesian oil and gas firm Medco Energi (Medco), signed the loan agreement with Bank Negara Indonesia (BNI).


Article link:

Solar Philippines, Indonesian partner sign USD14 million loan for Bali solar farm

Cebu-based SPC Power Corp. is divesting its stake in Bohol Light Co. Inc. (BLCI), a power distributor that serves Tagbilaran City, to Razon group affiliate Primelectric Holdings Inc. In a disclosure, SPC Power said its board approved the sale of its 29.92 million common shares in BLCI to Primelectric Holdings Inc. for P6.67 apiece or a total of P199.5 million.


Article link:

SPC sells P199.5 million stake in Bohol Light

Taisei Corp., one of Japan’s biggest general contractors, signed an investment framework and shareholders agreement with PetroGreen Energy Corp. (PGEC) to take a 25-percent equity stake in the latter’s subsidiary Rizal Green Energy Corp. (RGEC). The investment covers the funding, construction and operation of an initial portfolio of four solar power facilities totaling 112.6 megawatts (MW).

Article link:

Japan’s Taisei takes 25% stake in PGEC unit

Nexgen Energy Corp., a wholly owned subsidiary of Pure Energy Holdings Corp., said it is eyeing to go public as it aims to develop solar and wind power projects with a capacity of over 2,350 megawatts (MW). The company is preparing to list its initial public offering (IPO) in July this year and expecting to raise PHP500 million. The proceeds will be used to fund the projects and develop the said renewable energy capacity over the next 10 years.


Article link:

Pure Energy subsidiary eyes IPO

Ayala-led ACEN Corp. has secured a USD150 million green term loan from Sumitomo Mitsui Banking Corp. Singapore Branch (SMBC) through its subsidiary ACEN Renewables International. The loan has a tenure of five years and was arranged by SMBC, which serves as both lender and green loan coordinator, the company said. Through the loan, the energy company seeks to expand into several key international markets, including Australia.


Article link:

ACEN secures UDD150 million green term loan for projects

West Zone concessionaire Maynilad Water Services, Inc. said it is seeking approval from the Securities and Exchange Commission (SEC) for a proposed public offering of up to PHP12 billion in fixed-rate blue bonds. The offering includes an oversubscription option of up to PHP3 billion. The blue bonds will be issued in up to two series with tenors of five years and/or 10 years. The company said the target offer period will run from May to May. It intends to issue and list the blue bonds on the Philippine Dealing & Exchange Corp. on June.


Article link:

Maynilad plans sustainable water projects with PHP12 billion blue bonds

Manila Water Philippine Ventures, Inc. (MWPV), a subsidiary of Manila Water Co., Inc., announced its acquisition of a 70% stake in investment firm Equipacific HoldCo, Inc. (EHI) for PHP1.15 billion. MWPV signed a share purchase agreement with Equi-Parco Holdings Corp., Metropac Water Investments Corp., and TwinPeak Hydro Resources Corp. to acquire their respective interests of 30%, 30%, and 10% in EHI.


Article link:

Manila Water subsidiary acquires 70% stake in Equipacific



Media

The Bitanga family, known for its diversified investment portfolio, is moving its 31.2% stake in Rappler Holdings Corp., the company behind news site Rappler, from privately held Dolphin Fire Group, Inc. to publicly listed MRC Allied, Inc., both owned by the family. MRC Allied, engaged in property development, mining exploration, and renewable power generation, plans to acquire Dolphin Fire’s ownership stake in Rappler Holdings through a share swap.


Article link:

Bitanga family moves Rappler stake to publicly listed MRC Allied 


Real Estate

Hotel 101 Global Pte. Ltd. (Hotel101), a unit of Philippine-listed property developer DoubleDragon Corp., is nearing its planned listing on the Nasdaq Stock Exchange with a valuation of over $2.3 billion (P130 billion) following a merger deal with a special purpose acquisition company (SPAC) in the United States. Hotel101, a hotel property technology operator, and JVSPAC Acquisition Corp. have entered into a “binding definitive merger agreement,” DoubleDragon said in an e-mailed statement. The deal is expected to close in the second half of the year.


Article link:

Hotel101 to list on Nasdaq through SPAC merger deal

The real estate investment trust (REIT) of Gokongwei-led property developer Robinsons Land Corp. (RLC) has increased its public float to 49.95% from 33.86% previously after completing an overnight block sale valued at P8.50 billion. RLC sold 1.73 billion common shares of RL Commercial REIT, Inc. (RCR) at P4.92 apiece to “high-quality long-only institutional investors,” the company said in a disclosure.


Article link:

Robinsons Land’s REIT boosts public float to 49.95% in P8.50-B block sale

The board of Rockwell Land Corp. has approved a P5-billion term loan facility with BDO Unibank, Inc. to fund its projects, the listed property developer announced. The loan will have a term of up to ten years, Rockwell Land said in a disclosure. “The proceeds of the loan will be used to fund capital expenditures, land acquisitions, and other investments,” the company said.


Article link:

Rockwell Land board OK’s P5-B loan facility with BDO to fund capex projects 


Industrials & Manufacturing

DMCI Holdings and Semirara Mining and Power acquired Cemex Asian South East Corp (CASEC), the parent company of Cemex Philippines, in a deal worth $305.6 million (~P17.6 billion). CASEC owns 89.86% of CHP. The deal valued CHP at P1.42/share, and will result in a mandatory tender offer for the remaining 10.14% of the public float.


Article link:

DMCI Holdings acquires Cemex PH parent company for $305.6-M

Consumer & Retail

Hoshizaki Corporation announces that at its meeting of the Board of Directors held on April 11, 2024, the Company has resolved to acquire all shares of Technolux Equipment and  Supply Corporation and a controlling interest in HKR Equipment Corporation, an importer and distributor of food service equipment in the Republic of the Philippines through Hoshizaki Southeast Asia Holdings Pte. Ltd., a subsidiary of the Company, which makes Technolux and HKR a subsidiary of Hoshizaki.


Article link:

HOSHIZAKI strengthens its position in Southeast Asia with acquisitions

Bakery chain Balai Ni Fruitas Inc. has acquired legacy brand Sugarhouse, allowing the company of businessman Lester Yu to diversify its product offerings to include cakes. In a stock exchange filing, Balai, which operates Balai Pandesal, said the acquisition included other assets, such as intellectual property, “technical know-how,” delivery, commissary, and store equipment.


Article link:

Balai Ni Fruitas acquires Sugarhouse

Listed food and beverage store operator Fruitas Holdings, Inc. has concluded its first private placement of corporate notes, raising PHP200 million. The proceeds will be allocated for working capital requirements and general corporate purposes, Fruitas said in a stock exchange disclosure. The corporate notes were issued to qualified individual or institutional buyers, with no more than 19 primary institutional lenders participating.


Article link:

Fruitas raises PHP200 million via private placement of corporate notes


Financial Services

Asialink Finance Corp. (Asialink) is gearing up to conduct an initial public offering (IPO) by 2028, its chief executive officer said. In preparation for this milestone, the finance company is working to strengthen its financial standing, Asialink Chief Executive Officer Robert B. Jordan, Jr. said during a briefing. The total capital of Asialink increased to PHP12 billion from PHP8 billion at the end of 2023, spurred by a P4 billion investment from equity firm Creador.


Article link:

Asialink Finance plans IPO by 2028


Technology

Empower Finance, a San Francisco, CA-based financial technology company, acquired Petal, a NYC-based consumer credit card and financial technology company, and completed the acquisition of Cashalo, a Manila, Philippines consumer credit and lending company. The amount of the deals were not disclosed. Petal and Cashalo give Empower a strategic presence in the credit card category in the U.S. and the credit market in Southeast Asia, respectively.


Article link:

Empower to Acquire Petal; Completes Acquisition of Cashalo

BuildMart PH Technologies, Inc., a B2B e-commerce platform that connects manufacturers with hardware stores, has invested an undisclosed amount to Hubware Corporation, a leading online marketplace for builders, hardware stores, and construction suppliers, through the launch of “BuildHub.ph,” an online platform serving as a centralized system for the construction industry.


Article link:

Hubware launches digital construction ecosystem following investment from BuildMart PH


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.

*USD 1.00 = PHP57.6 as of 30/04/2024

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