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Philippines Newsletter - February 2023



Market Summary


  • The Agriculture sector experienced the largest deal activity last month, led by the USD97.6m acquisition of Axelum Resources Corp. by Metro Pacific Investments Corp. (MPIC). Blockchain startup Yield Guild Games (YGG) also raised USD14.0m from several investors, including a16z Crypto which is managed by Andreessen Horowitz.

  • Several fundraising activities have been announced, including the revival of SM’s USD1.0bn REIT IPO and AyalaLand’s plans to raise USD1.0bn from bond issuances & bank borrowings to fund capital expenditures. AgriNurture Inc. also plans to push through with its USD15.2m SRO this year.

Aggregate Deal Value* = USD146.0m

 

This month’s top deals


Energy & Utilities


Real Estate

ALI plans to raise PHP60 billion via bond offering, bank loans this year

Property giant Ayala Land Inc. (ALI) plans to raise PHP60.0 billion this year for its capital expenditures and debt obligations, a top company official said. The company plans to issue PHP22.0 billion in fixed-rate retail bonds, said CFO Augusto Bengzon, adding that the bonds may be issued as early as next month. The retail bond offering will be split between five-year and 10-year bonds. The remaining PHP38.0-40.0 billion capital will be raised through bank borrowings.


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ALI plans to raise PHP60 billion via bond offering, bank loans this year

SMPH revives USD1 billion REIT IPO


Telecommunications & Media


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Agriculture

MPI acquires 35% of Axelum for PHP5.3billion

Axelum Resources Corp. announced that Metro Pacific Investments Corp. (MPIC), through its wholly-owned subsidiary Metro Pacific Agro Ventures Inc. (MPAV), is acquiring a 35% stake in the coconut products exporter for PHP5.3 billion. MPAV intends to use the acquisition to strengthen Axelum’s international business and develop the domestic market to support local coconut farmers.


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MPI acquires 35% of Axelum for PHP5.3billion

AgriNurture to push through with PHP280m SRO

AgriNurture invests PHP2.6 billion in corn farming


Healthcare & Life Science

Filipino Healthtech firm secures pre-series money

Mediclick, a Philippine-based pharmatech startup, has announced raising USD300.0 thousand in its pre-Seed funding round anchored by functional medicine provider Romlas Health Group (RHG). The fresh funding will be used to expand the startup’s tech platform, scale its upper funnel marketing, and for operational purposes, according to Mediclick.

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Transportation and Logistics

PAL Holdings, Inc. (PHI) announced on Monday that its board of directors approved an exchange ratio of 15.57 PHI shares to one Philippine Airlines, Inc. (PAL) share for its planned share swap. The company said the move is part of PAL’s restructuring, “parts of the debts of the unsecured creditors were impaired and converted into equity of PAL.” PAL’s impaired creditors now own approximately a 20% stake in the company.

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Infrastructure

Megawide’s PHP1.5billion preferred share offering gets SEC nod

The SEC approved Megawide’s registration statement of a PHP1.5 billion preferred shares offer. Megawide’s registration statement indicated that 15 million cumulative, redeemable, non-voting, non-participating, non-convertible, redeemable, perpetual Series 5 preferred shares would be up for sale at PHP100.0 apiece. Proceeds from the offer, estimated at P1.5 billion, will be used to partially finance the company's redemption of outstanding preferred shares.


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Megawide’s PHP1.5billion preferred share offering gets SEC nod

Citicore Holdings subscribes to Megawide capital hike

Metro Pacific unit inks construction deal for P6-B Candaba project


Technology

a16z Crypto backs nearly USD14m token sale of PH-based Yield Guild Games

A16z Crypto, a Web3-focused fund managed by US-based venture capital firm Andreessen Horowitz, has joined a consortium of investors that backed the USD13.8m raise of Philippine startup Yield Guild Games (YGG). The raise, which was done through a token sale from the YGG treasury, was also participated by DWF Labs, Galaxy Interactive, Sangha Capital, and Sanctor Capital, according to the announcement.

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Others

Global Ferronickel acquires control over port operator

Nickel ore producer Global Ferronickel Holdings, Inc. (FNI) has acquired an additional 24% shares in its unit Mariveles Harbor Corp. (MHC). FNI said its board of directors had authorized the acquisition of more shares “to have more control over the operations of the port.” In 2019, the parent firm acquired a 40% stake in MHC or 1.7 million shares for PHP450.0 million for easier access to port services. The latest acquisition brings the listed firm’s share in the port operator increased to 64%.

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

*USD 1.00 = PHP54.66 as of 04/04/2023


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