Singapore’s GIC to buy 9.64% in Philippine brandy maker Emperador

GIC, the sovereign wealth fund of Singapore is buying a 9.64-per cent stake in Philippine liquor firm Emperador Inc for $391 million (S$506 million).

Under the deal, GIC will buy 1.12 billion Emperador shares at 11 pesos each for a total of 12.3 billion pesos ($273 million), equivalent to a 6.95-per cent stake and will buy 5.28 billion pesos of equity-linked securities, taking the total stake to 9.64 per cent.

GIC has an option to invest another 4.4 billion pesos over 13 months to increase its stake to 11.76 per cent, Emperador said in a filing.

GIC will also have an option to invest an additional 4.4 billion pesos at 11.00 pesos per share over a 13-month period.

The Manila-based company, majority owned by Alliance Global Group Inc, said the partnership will strengthen its capital position to further enhance the leading industry position of Emperador in the country and expand its business in both local and global markets.

"The partnership enhances AGI's track record of growing companies into market leaders through strong execution, brand building and product innovation," Andrew Tan, the company chairman, said in a statement.

Emperador is the Philippines' largest spirits company, as well as the world's biggest brandy producer.

In May, Emperador struck a deal to buy Whyte & Mackay Scotch whisky from United Spirits Ltd, India's largest spirits company, for $729 million. (See: United Spirits to sell Whyte & Mackay to Philippines-based Emperador for $729 mn)