Emperador affiliate Andresons Group buys P337 million in shares

THE Andresons Group, Inc., an affiliate of Emperador, Inc., has increased its stake in the listed brandy and whisky producer with a P337-million purchase of 25 million shares on Monday.

The shares were acquired from the open market at P13.48 each, Emperador said in a regulatory filing on Monday.

Combined with previous purchases last week, the Andresons Group now holds 125 million Emperador shares, representing a 0.79% stake.

Both companies are controlled by tycoon Andrew L. Tan.

“Following the transaction, Emperador’s public float now stands at 20.32%, just a tiny fraction above the 20% requirement for index inclusion,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

Unicapital Securities Equity Research Analyst Jeri R. Alfonso said the buying spree reflects a strategic investment by the Andresons Group, which likely views Emperador as undervalued.

“With the stock still trading at a bargain, the Andresons Group are taking the opportunity to buy while the rest of the market hesitates,” she said.

She added that further acquisitions are limited, as buying beyond 50 million more shares could reduce the public float below the required 20%.

Emperador has been expanding its vineyard portfolio in Spain and distilleries in Scotland as part of its plan to boost its global presence over the next five years.

The company reported a 6.5% growth in attributable net income to P1.85 billion in the first quarter, with revenues and other income rising 0.6% to P13.21 billion.

Emperador shares rose 0.58% or eight centavos to P13.88 apiece on Monday. — Revin Mikhael D. Ochave