FPH in P1.8-B sale of preferred shares
Lopez-led First Philippine Holdings Corp. (FPH) is raising P1.8 billion from the first tranche of non-voting preferred shares offered to selected institutional investors.
In a disclosure to the Philippine Stock Exchange on Tuesday, FPH said it had offered through a private placement 3.6 million preferred shares carrying a fixed cash dividend of 5.5 percent per annum at P500 per share.
This is part of FPH’s plan to offer up to six million of these non-voting preferred shares, which FPH can redeem starting on the seventh year or on any dividend date payment thereafter. FPH’s board approved the issuance of up to P3 billion of these preferred shares in late May.
Proceeds from this issuance are expected to fund the company’s investments and acquisitions to be undertaken directly or indirectly through any of its subsidiaries as well as to fund other general corporate purposes, the disclosure said.
This new series of preferred shares (series C) are cumulative, non-voting, non-participating, non-convertible and peso-denominated. They have a par value of P100 each.
The preferred shares are exempted from registration at the Securities and Exchange Commission because they will not be offered to the public. Instead, they will be sold to no more than 19 qualified buyers or institutions as a private placement.
FPH’s key businesses are power generation, manufacturing and real estate development. Its subsidiaries and affiliates include, among others, First Gen Corp., Energy Development Corp., First Philippine Industrial Corp. and Rockwell Land Corp.
