CORPORATE REGULATORS have approved the application of Metro Pacific Investments Corp. (MPIC) to raise its authorized capital stock as part of the firm?s efforts to restructure its equity base.

The approval comes amid the buying binge of the publicly listed firm that led to the expansion of its corporate footprints in power distribution, broadcasting and mining, as it jockeyed for position with acquisition rival San Miguel Corp.

In a disclosure to the Philippine Stock Exchange Wednesday, MPIC said it was notified by the Securities and Exchange Commission that its bid to increase its authorized capital stock from P21.5 billion to P24.2 billion had been approved.

This will allow the firm to carry out its equity fund raising activities to finance its corporate acquisitions.

Under the old structure, the firm?s P21.5-billion capital was divided into 20 billion common shares with par value of P1 per share; 5 billion Class A preferred shares with par value of P0.01 per share, and 1.5 billion Class B preferred shares with par value of P1 per share.

The newly approved structure will bring MPIC?s equity base to P24.2 billion, divided into 22.6 billion common shares with par value of P1 per share; 5 billion Class A preferred shares with par value of P0.01 per share and 1.5 billion Class B preferred shares with par value of P1 per share.

?The corporation was also notified of the SEC approval of its application for equity restructuring, through wiping out its deficit as of Dec. 31, 2008 in the amount of P1.6 billion by applying against the same the corresponding amount out of its additional paid-in capital of P5.7 billion,? MPIC president Jose Ma. Lim told the bourse.

MPIC recorded a deficit instead of retained earnings at the parent level after absorbing debt-ridden property firm Metro Pacific Corp., which made a costly bid for the Fort Bonifacio Global City in the 1990s.

MPIC was created in 2006 to focus on water distribution, power distribution, toll roads and healthcare businesses, which are now making money for the holding firm.

It has since left the property business and is now better capitalized.

MPIC had raised about P14 billion from its recent public offering of shares, completing the largest equity deal in the Philippines since 2007 after its underwriter exercised the option to take up more shares.

This year, MPIC has booked retained earnings given a sharply improved profit performance.