C00640-2018

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SBS Philippines CorporationSBS

PSE Disclosure Form 4-29 - Disbursement of Proceeds and Progress Report References: Memorandum No. 626 - 2007 dated December 20, 2007
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Disbursement of IPO proceeds as additional capital infusion in Lence Holdings Corporation ("LHC"), a majority owned subsidiary of the SBS Philippines Corporation ("Company")
Background/Description of the Disclosure

On February 5, 2018, the Company subscribed to an additional 52,000,000 common shares from the unissued share capital of the Company's majority owned-subsidiary, Lence Holdings Corporation, at a subscription price of P6.7625 per share for a total consideration in cash of Three Hundred Fifty One Million Six Hundred Fifty Thousand Pesos (PhP 351,650,000.00) which was funded by the IPO proceeds to the extent of P350 million as earlier approved by the Board in its meeting of December 19, 2017 and the balance from internally generated funds of the Corporation.

The disbursement is in accordance with the reallocation and change in the use of IPO Proceeds as approved by the Board of Directors on December 19, 2017 allotting up to P350 million of the unutilized IPO proceeds for additional capital infusion in LHC to finance the latter's acquisition of a warehouse facility complex.
Other Relevant Information

The closing of the LHC's acquisition transaction and payment of the consideration for the sale is expected to be made on or before February 9, 2018 subject to the satisfactory completion of the closing requirements by the parties.

Other shareholders of LHC similarly subscribed to additional common shares from the unissued share capital of LHC in proportion to their current equity interests at the same subscription price of P6.7625 per share, which share subscriptions were paid on February 5, 2018. In particular, the Company's wholly-owned subsidiary, SBS Holdings and Enterprises Corporation, also subscribed to an additional 20,000,000 common shares from the unissued capital stock of LHC.
Filed on behalf by:
Name REGINA SIMONA DE GUZMAN
Designation GENERAL COUNSEL & COMPLIANCE OFFICER