CONGLOMERATE San Miguel Corp. (SMC) on Thursday said its board of directors will reissue the 300-million preferred shares it redeemed more than two years ago.
The company said in its disclosure to the Philippine Stock Exchange that its board approved the reissuance and private placement of its 300 million of Series 1 preferred shares that will come from the Treasury shares of the company.
SMC, which is slowly diversifying in infrastructure and other heavy industries, did not give the price but its preferred shares is trading at P76.10 per share. At that price, the reissuance will amount to about P22.83 billion.
“The terms and conditions of the issuance shall be in accordance with the amended articles of incorporation of the company,” it said.
According to the amendment, San Miguel’s board reclassified some 810 million Series 1 preferred shares to Series 2.
As a result, it will have 300 million in Series 1 preferred shares and 1.91 billion in Series 2 preferred shares.
The company said its board also approved the issuance of Series 2 preferred shares.
In September 2012 SMC redeemed that same series of preferred shares at P75 per share. The company issued Series 2 shares to redeem the old shares. The said preferred shares carry a par value of P5 and was sold at P75 per share.
Originally issued in 2009, the first series of preferred shares was offered to SMC shareholders who were having second thoughts about the conglomerate’s diversification plans, which then was mainly a food and beverage company.
Over the years, SMC would diversify into power, telecom, toll roads and airport. The company, however, is still known as a food and beverage company as most of its diversification strategy of going into heavy industries still has to bear fruit.
VG Cabuag