CONGLOMERATE San Miguel Corp. (SMC) on Friday said its board of directors had approved the offering of series 2 preferred shares, with an initial offer amount of P30 billion.
The company said it is registering P80 billion worth of preferred shares at an offer price of P75 per share, or 1.06 billion shares. These preferred shares will be issued during the next three years.
The company added it will initially offer P30 billion out of the P80 billion registered, selling 400 million shares.
The company said it will still file an application with the regulators.
“For these purposes, the board has authorized the engagement of the services of underwriters, advisors, legal counsels, stock and transfer agent, receiving agent/bank and other agents as may be necessary, proper or desirable to effect the offering,” the company said in its disclosure to the Philippine Stock Exchange.
Preferred shares normally is biased on giving out dividends to investors, but has no voting rights, which the common shares has.
Last year the company raised P33.5 billion of its series 2 preferred shares, which will be used to pay for its maturing preferred shares. The offering was also priced at P75 apiece.
San Miguel’s share price closed on Friday at P60. The conglomerate’s income for the first nine months of 2015 dropped 18 percent to P18.94 billion, from the previous P23.15 billion. The downfall was caused by foreign-exchange losses as revenues plunged due to lower oil prices.
Stripping the effect of foreign-exchange losses, the company said, its income for the nine-month period ending September, grew 7 percent to P26.8 billion, from the previous year’s P25 billion. During the first six months of 2015, the company’s net income declined 8 percent to P16.9 billion, from last year’s P18.4 billion.
Revenues for January to September declined 15 percent to P504.5 billion, from last year’s P593.5 billion, a result of falling oil prices and lower generation volumes from scheduled maintenance shutdown of Malampaya facilities, Ilijan and Sual power plants.
Operating income, meanwhile, grew 23 percent to P58.1 billion on higher revenues from its infrastructure unit and core food, beverage and packaging businesses.