In a disclosure to the Philippine Stock Exchange, Cyber Bay said its board of directors had authorized the conversion into common shares of advances made by the Central Bay shareholders, namely Centasia Group Ltd., Italian Thai (BVI) Development Co. Ltd., Cosco Land Corp., Guoco Securities Phils. Inc. and Guocos Holdings Phils. (now Prime Orion Phils. Inc.).
"The corporation resorted to a debt-to-equity conversion of shareholders’ advances to retire these debts, thereby improving our balance sheet accounts," the company said.
Under the terms of the conversion, every P1 of shareholder’s advance will be converted into one share, priced at P1 par value.
The additional shares to be issued as a result of the debt-to-equity conversion will be coming from the unissued shares of Cyber Bay, which has an authorized capital stock of P8 billion out of which only P6.16 billion are issued and outstanding.
With the conversion, the percentage of foreign ownership will increase from 28.8 percent to 33.78 percent, while the Filipino bloc will decline from 71.2 percent to 66.2 percent.
San Miguel Corp. president and COO Ramon Ang is chairman and CEO of Cyber Bay, formerly known as Centennial City.