C05120-2017

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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

Change in Use of IPO Proceeds
Background/Description of the Disclosure

On August 14, 2017, the Board of Directors approved to reallocate a total of P 450 million of the unutilized IPO Proceeds for the acquisition either of a warehouse facility complex or separately for the purchase of real estate property or a company holding such realty property and capital expenditure for the purchase or construction of a warehouse building which were previously intended for the strategic acquisition of businesses ( P350 million) and facility improvements (P 100 million).
Other Relevant Information

In line with the business strategy to strengthen its distribution capability and bring more value to its customers and suppliers, the Board of Directors deemed it to best interest of the Company and its shareholders to change back to allocating part of the unutilized proceeds from the Initial Public Offering for setting up the Company’s own warehouse-cum- distribution facility to serve as a key distribution center for regional market customers south of Metro Manila.

Given that customers are looking for savings, the south depot will allow greater opportunities for customers cut down on their logistics and sourcing organization, integrate the Company’s procurement and logistic capabilities in their business processes, and promote collaborations for supply chain optimization to simplify their operations. Further, this capital expenditure would not only help control residual risks in not owning major logistic facilities but it is also a good investment opportunity to broaden the Company’s asset base.

For additional details, please refer to the attached letter to the PSE on the subject.
Filed on behalf by:
Name REGINA SIMONA DE GUZMAN
Designation GENERAL COUNSEL & COMPLIANCE OFFICER