Lopez holding firm issues P1.8B in preferred shares


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At P500 each, First Philippine Holdings says it has the option to redeem the shares starting on the 7th anniversary of the issue date

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MANILA, Philippines – The Lopez family’s listed holding firm, First Philippine Holdings Corporation (FPHC), reported Tuesday, June 3 that it has issued P1.8 billion worth of preferred shares via private placement.

In a disclosure to the Philippine Stock Exchange, FPHC said the first tranche of preferred shares was issued at P500 per share. The preferred shares are cumulative, non-voting, non-participating, and non-convertible.

Last month, the board of FPHC approved plans to issue preferred shares through private placement and/or to issue up to P7 billion in fixed corporate notes to finance potential investments and acquisitions.

FPHC earlier reduced its authorized capital stock to P22.8 billion from P32.1 billion to reflect the cancellation of the preferred shares that have been so far redeemed by the company.

FPHC said the cash dividend on the preferred shares was fixed by the company’s board of directors at 5.5% per year. “FPHC has the option to redeem the preferred shares in whole (but not in part) starting on the 7th anniversary from the issue date,” the company said. FPHC appointed BDO Capital and Investment Corporation as the sole arranger for the transaction.

FPHC has investments in power generation, real estate developments, manufacturing, and construction. The company’s subsidiaries and affiliates include, among others, First Gen Corporation, Energy Development Corporation, First Philippine Industrial Corporation, and Rockwell Land Corporation. The company has 3.95% remaining interest in Manila Electric Company. – Rappler.com

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