Ultra bilyonaryo Ramon S. Ang ruled the mergers and acquisitions (MA) game this year with the monster takeover of his Eagle Cement (EAGLE) by San Miguel Corp. (SMC), according to PwC Philippines.
SMC’s $1.874 billion takeover of EAGLE is the year’s biggest M&A deal with Globe Telecom (GLO) of the Ayalas and PLDT-Smart (TEL) led by bilyonaryo Manny V. Pangilinan in second and third spots, respectively.
Ang has so far re-invested the $1.4 billion cash he generated from the EAGLE sale to Top Frontier Investment, the 60 percent owner of SMC.
PWC reported a total of 33 deals signed this year worth a combined $8.1 billion with the Top 10 transactions accounting for 80 percent or $6.511 billion.
“The Philippines remains one of the more robust countries for dealmakers. Investors seem to be drawn to the Philippines’ resilient service-centered economy and strong domestic demand,” said PWC.
PWC said the Department of Information and Communications Technology’s (DICT) new policy allowing open shared ownership of antennas, transmitters, receivers and other components of cell towers spurred GLOBE and TEL-Smart to make M&A deals.
GLO sold and leased back its 7,059 towers for $1.6 billion to PhilTower Consortium Inc., Frontier Tower Associates Philippines, Pinnacle Towers Pte Ltd., and Miescor Infrastructure Development Corp. GLO will use the money to bankroll its expansion.
TEL-Smart raised $1.5 billion from the sale and leaseback of 5,907 towers to the Axiata Group Berhad and edotco Group Sdn Bhd ($800 million), and DigitalBridge Group, Inc. and EdgePoint Infrastructure ($667 million).
Japan’s second largest bank Sumitomo Mitsui quadrupled its stake to 20 percent in Rizal Commercial Banking Corp. of bilyonaryo Helen Yuchengco-Dee, making it the 6th biggest deal this year.
Sumitomo Mitsui paid $465 million to buy 15 percent in RCBC just a year after buying five percent in the bank.
PWC expects another strong year for dealmaking.
“As the Philippine economy continues to open, post-pandemic acquisition opportunities are anticipated to take place for private companies. Public company takeovers will continue to be mostly negotiated and contractual for some acquisitions of stakes in listed companies,” said PWC.
Here are the Top 10 M&A deals in the Philippines in 2022:
1) San Miguel Corp.’s take over of Eagle Cement – $1.874 billion
2) Globe Telecom’s sale of 3,529 towers to Frontier Tower Associates Philippines and Pinnacle Towers – $812 million
3)Smart Communication’s sale of 2,973 towers to Axiata Group and edotco Group – $800 million
4) Smart’s sale of 2,943 towers to DigitalBridge Group and EdgePoint Infrastructure – $667 million
5) Globe’s sale of cell towers to MIESCOR Infrastructure Development – $473 million
6) Sumitomo Mitsui Financial Group’s purchase of additional stake in Rizal Commercial Banking Corporation – $465 million
7) Takeover of HC Consumer Finance Philippines by MUFG Bank, Mitsubishi UFJ Financial Group, Bank of Ayudhya Public Company -$423 million
8) AIA Group’s purchase of MediCard Philippines – $350 million
9) PhilTower Consortium’s acquisition of Globe’s 1,350 towers – $341 million
10) SM Investments’ takeover of
green power firm AllFirst Equity Holdings – $306 million