Iloilo-based sugar milling firm Central Azucarera de San Antonio (CASA) is looking to raise P558 million in funding through the sale of shares that will be traded over the counter in the country.
The firm, which operates in Passi City in Iloilo and is a sister company to the sugar milling operation of musician Jose Mari Chan, is looking to offer to the public through a direct public offering 277,500 primary and secondary common shares at an offer price of P2,012.52 apiece.
The share sale is divided into 214,571 primary shares and another 62,929 of secondary shares to be sold by Antonio Steven Chan, Maria Luisa Chan, Antonio Stephan Chan, Maria Teresa Chan, Lily Zenaida Chan, Maria Antonietta Chan and MCS Investments (WA) Pty Ltd.
Antonio Steven Chan is a brother of Jose Mari Chan.
The offered shares comprise 15 percent of the firm’s issued and outstanding common shares post-share sale called direct public offer.
SB Capital Investment Corp. serves as the sale’s issue manager and underwriter.
The firm said it will use the proceeds for upgrading its cogeneration facility, motor pool and sugar factory as well as for land acquisition.
In particular, the firm will be spending P115 million for the upgrade of its cogeneration facility, P88.5 million for land acquisitions, P85.8 million for upgrading of its motor pool, P85.5 million for farm mechanization and P44 million for upgrading of the sugar factory.
CASA was born from Central Azucarera de Bais Inc. (CAB), which is majority owned by the Chan family. CAB is one of the oldest sugar mills in the Philippines, having been established in 1918 by Compania General de Tabacos de Filipinas, known more popularly as ‘Tabacalera’.
In 1979, Antonio Chan, then a prominent sugar trader, acquired CAB from the Tabacalera group signaling his family’s initial foray into sugar manufacturing.