JG Summit raises $200 million from placement

The conglomerate hits the market as its stock is about to go into the MSCI Philippines index, prompting a number of passive index funds to buy into the deal.

JG Summit, the Philippine conglomerate controlled by the Gokongwei family, has raised Ps8.8 billion $200 million from a share placement that it will use partly to fund its purchase of a stake in power producer Manila Electric Co Meralco.

The deal was completed after the market closed on Monday, ahead of JG Summit’s inclusion in the MSCI Philippines index from the close of trading on Tuesday. The entry into the index was announced on November 7 and, according to a source, is estimated to result in $60 million to $85 million of additional buying of the company’s shares by passive index funds.

JG Summit’s share price...

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