Announcing their 2007 year-end results last Wednesday, ABC Group Chief Executive Officer Douglas Munatsi said Citi Venture Capital International (CVCI), a subsidiary of Citigroup, had approved an investment of US$25 million by way of a two-year convertible loan. The new loan comes hardly three months after the International Finance Corporation (IFC) snapped up over 13,8 million shares in ABC after pumping in P37.4 million, taking its shareholding to 10.7 percent in the group.
The IFC has also tabled a US$13.5 million convertible loan for ABC, which, if it goes through, will increase their stake to 23.8 percent. "The terms and pricing of the CVCI offer are broadly in line with those of the IFC convertible loan," Munatsi said. "On conversion, the investment will give CVCI a stake of close to 20 percent in the group." The group, however, said it was vigorously pursuing a rights offer and private placement as an avenue of trying not to dilute the existing shareholders through the new partnerships.
