This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-13289857
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| San Miguel shares fall steeply after share sale | San Miguel shares fall steeply after share sale |
| (40 minutes later) | |
| Shares in San Miguel, the biggest beer maker in the Philippines, have plunged by a record amount, after the company raised $1bn (£605m) in a share sale. | Shares in San Miguel, the biggest beer maker in the Philippines, have plunged by a record amount, after the company raised $1bn (£605m) in a share sale. |
| San Miguel shares fell as much as 28% on Thursday, the most since 1990, when the stock started trading. | San Miguel shares fell as much as 28% on Thursday, the most since 1990, when the stock started trading. |
| A fund manager in Manila told BBC News the sell-off was in reaction to the company's recent $1bn share sale. | A fund manager in Manila told BBC News the sell-off was in reaction to the company's recent $1bn share sale. |
| San Miguel sold about $600m in convertible bonds and roughly $350m in common shares. | |
| "Investors didn't want to buy the common shares, but they had to in order to get their hands on the bonds. That is why you are seeing the sell-off," the fund manager said. | |
| The convertible bonds - bonds that can be exchanged for shares - offer an annual coupon, or interest rate, of 2%, and a conversion premium of 25% to the offer price. | |
| Analysts said the convertible bonds offered potential gains, while offering some protection against losses, making them much more attractive than common shares. | |
| San Miguel is in an expansion drive. | |
| It aims to spend more than $4bn in order to double revenues in five years. |