MPIC to issue P50-M preferred shares
abs-cbnNEWS.com | 07/02/2009 2:35 PM
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MANILA - Diversified conglomerate Metro Pacific Investments Corp. (MPIC) announced Thursday that its board of directors have approved a plan to issue P50 million worth of preferred shares as part of its plan to widen its public ownership.
In a disclosure to the Philippine Stock Exchange (PSE), MPIC said it will offer 5 billion voting, cumulative, non-participating Class A preferred shares at an issue price of 1 centavo each.
The Class A preferred shares shall not be convertible to any shares of stock of MPIC of any class, the company said. These shares carry a dividend rate of 10 percent per year to be calculated based on par value, upon declaration made at the sole option of MPIC's board of directors.
During the listed firm's stockholders meeting in May, Manuel V. Pangilinan, the managing director of MPIC's parent, Hong Kong-based First Pacific Co. Ltd, said public ownership in MPIC will be increased within this year to about 25 percent from its current 2 percent. Pangilinan said MPIC has to become a "truly public company."
MPIC, a Philippine-listed investment company with interests in water concession, tollroads, and hospitals, is 97.9-percent owned by Metro Pacific Holdings Corp., which in turn, is largely owned by First Pacific.
MPIC shareholders approved during their May meeting the increase in company's authorized capital stock by P10 billion to P31.55 billion. The issuance of the P0.01-worth preferred shares was part of the increased capital stock.
In a related development, MPIC said its board has approved in principle the issuance of new common shares, the number and issue price of which will be finalized by August 25.
Earlier, MPIC said it is planning to raise $200 million to $300 million this year through a public offering or a share placement. The company did not state what the funds would be used for, but has previously said it wants to acquire a 10.17-percent stake in Manila Electric Co. (Meralco) worth around $200 million at current share prices.
"There is a significant fund raising coming on line with respect to Metro Pacific, and based on those market soundings, there will be a determination of likely price and issue price, but the target is anywhere between $200 million and $300 million," MPIC Chairman Manuel V. Pangilinan told reporters.
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