Pure Foods preferred shares trading suspended

MANILA, Philippines–The Philippine Stock Exchange (PSE) has approved a request by San Miguel Pure Foods Co. Inc. to suspend trading of its preferred shares starting Feb. 12 as the company prepares to redeem these outstanding instruments.

The voluntary trading suspension three days before the record date was requested in connection with the redemption of preferred shares.

The board has approved the issuance of P15 billion in new preferred shares to refinance these old preferred shares. The company is set to redeem old preferred shares issued in 2011.

Redemption price was set at P1,000 a share starting March 3 this year, based on a disclosure to the PSE on Wednesday.

After the redemption of these preferred shares, the company said its foreign ownership level would still be well within the 40-percent foreign ownership limit.

The company is now finalizing the terms on the new preferred shares to be issued.

Preferred shares are shares of stocks whose shareholders are given preference when it comes to dividend payment over common stockholders. Fixed dividends are usually paid but their holders usually do not have voting rights.–Doris C. Dumlao