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THE
Securities and Exchange Commission (SEC) approved on
Thursday, the plan of Lopez-led First Philippine
Holdings Corp. (FPHC) to sell up to P5 billion worth of
series B perpetual preferred-shares.
The
offering involves up to 30 million primary shares with
an over-allotment option of 20 million to be sold at
P100 each.
The
listed power and infrastructure conglomerate said
proceeds from the offering, targeted next month, will be
used to refinance debt and fund-strategic acquisitions.
A
perpetual-preferred share has no fixed maturity and pays
its stated dividend forever or “in perpetuity.”
The
shares are cumulative, non-voting, nonparticipating and
non-convertible peso-denominated. Each share has a par
value of P100 and a liquidation-right equivalent to
P100.
The
issuance will be taken from FPHC’s 200 million
authorized preferred share capital. BDO Capital and
Investment Corp. is the issue manager and sole
bookrunner for the said offering.
Following the offer, FPHC will have 588.91 million
common shares; 20 million series-A perpetual preferred
shares and 30 million series-B perpetual-preferred
shares issued and outstanding.
FPHC
intends to use the proceeds from this sale to partially
repay and refinance its outstanding debts amounting to
around P1.5 billion; as well as fund
strategic-acquisitions programmed this year up to 2011;
and other capital and operating requirements.
“The
company plans to acquire additional stake in Meralco
should the government proceed with its public
pronouncements to sell Meralco shares held by the
national government and/or government-owned and
controlled corporations,” FPHC stated.
The
company is also open to exploring other investment
opportunities in electronics and electricals
manufacturing and other infrastructure projects such as
tollroads.
FPHC,
whose shares are being traded at the local bourse, is 43
percent owned by Benpres Holdings Corp., also a
Lopez-owned company. |
