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Philippines public agency increases stake in GIC-backed Emperador to above 5%

Lin Daoyi
Lin Daoyi • 2 min read
Philippines public agency increases stake in GIC-backed Emperador to above 5%
Singapore's GIC owns approximately 12% of Emperador. Photo: Bloomberg
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In a bourse filing on Dec 26, Emperador Inc has announced that the Philippines’ Government Service Insurance System (GSIS) has acquired 131,300,000 shares in the company over the past 60 days. As a result, the GSIS has become a substantial shareholder and now holds a total of 823,196,500 shares, or 5.23% of the outstanding common shares in the company.

The GSIS provides social security coverage to employees in the Filipino public sector. The president and general manager of the GSIS, Jose Arnulfo A. Veloso, was president and CEO of Philippines National Bank from 2018 to 2022.

Emperador is majority-owned by Filipino tycoon Andrew Tan’s Alliance Global Group and is the world’s leading brandy seller by volume. The company was first listed on the Philippines stock exchange in 2013 and had a secondary listing on the Singapore Exchange in 2022.

Singapore’s GIC holds an approximate 12% stake in the company currently through its private equity arm Arran Investment. In 2014, the sovereign wealth fund invested around $519 million in Emparador for a 9.64% stake — 6.95% in direct equity and the rest in equity-linked securities (ELS) that could be converted into equity within seven years. GIC also had the option to invest another $130 million to increase its stake to 11.76%.

GIC has partially exercised the ELS and a portion was converted into shares in February 2020. The conversion period of the balance ELS, representing 475,000,000 shares, has been extended multiple times, the latest being to August 12, 2026.

In September 2023, there were rumours that GIC was planning to sell its stake, valued at around $950 million then, in Emperador.

See also: Global Alpha Capital Management disposes 331,100 shares in Raffles Medical Group

For the nine months ended Sept 30, Emperador reported gross revenue of PHP39.6 billion and net income of approximately PHP4.68 billion attributable to parent equity holders.

Shares in Emperador remain flat at 35 cents as at 10:40am on Dec 26. The counter is down 7.5 cents, or around 17.6%, year-to-date.

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