San Miguel Corp. has announced plans to issue additional shares equivalent to 10% of its outstanding capital stock. In a disclosure to the Philippine stock exchange, the food and drinks giant said that the shares to be issued will come from its treasury shares, which are stocks reacquired by the company and are available for retirement or resale.

Based on data from the Philippine Stock Exchange, San Miguel currently has 1.107 bln in outstanding shares. These shares, based on the bourse data, cover the B shares of the company. The bourse data showed that the outstanding shares covering San Miguel A total 1.730 bln.

A shares are exclusive to Filipino investors, while B shares are open to Filipino and foreign investors.

The shares to be issued by San Miguel will be offered to its stockholders through a rights offering.

"Existing shareholders will have the pre-emptive right to subscribe to the additional issuance at a ratio of one share for every 10 shares owned," the company told the stock exchange.

San Miguel said the registration statement and offering materials will be filed with regulators by the third week of January, by which time the price of the shares to be issued may be determined.

ABN-AMRO Rothschild will serve as global coordinator of the offering, while Sycip Salazar will serve as legal counsel.