After emerging from decades-long indebtedness, Benguet Corp. is looking at further expanding its footprint in the mining sector as well as venture into other businesses, such as renewable energy.
“As [Benguet] embarks on a new chapter, it will continue to deepen its foothold in the mining sector as well as build up its portfolio in new business ventures like agriculture, real estate, bulk water and renewable energy,” the company said in a disclosure on Monday.
Benguet Corp. said becoming debt-free relieved it of the negative restrictions of the restructured loans that hampered it from growing the business.
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The company operates a gold mine in Benguet, nickel mines in Zambales and a processing facility in Baguio City. Beyond mining, it has diversified into other sectors such as healthcare and diagnostics, mining logistics, industrial equipment trading, port services, shipping services, real estate and lime kiln operation.
“Now with improved creditworthiness and clean balance sheet, [Benguet] can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the company and will hopefully lead to future dividend payouts,” it added.
Benguet, which is primarily engaged in mining and mineral exploration and holds interests in various industries such as logistics, announced paying a cash dividend to its shareholders.
It declared a cash dividend on its common stock at P0.20 a piece and P0.28 for its convertible preferred stock, payable starting Dec. 10 to shareholders of record as of Nov. 14.
This is the first time in 35 years that Benguet made such payments as it became debt-free with the settlement of all its outstanding debts in October.
“The termination of the 1993 debt restructuring agreement and mortgage trust indenture is the culmination of management’s long and hard struggle to free the company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation,” Benguet president Lina Fernandez said.
The mining company signed a mutual rescission agreement with its remaining creditors Wilshire Business Consulting Corp. and Armstrong Capital Holdings Corp., along with Philippine Veterans Bank as trustee, effectively releasing the firm from mortgage.
Such an agreement means that the parties involved are freed from the contract, in this case relating to restructured loans, which is considered ended.
In 1993, Benguet restructured loans from 23 creditor banks and financial institutions amounting to over P1.4 billion and has settled substantial portions of the loans since then.
The remaining creditors opted to transact with Benguet including leveraging the debts for investment purposes, it added.