Jardine gets SEC nod for capital restructuring

Jardine Davies Inc.(JDI), a publicly-listed industrial conglomerate,has secured the approval of the Securities and Exchange Commission (SEC) for a capital restructuring that will involve the payment of over P700 million in dividends to its stockholders.

JDI said the SEC has fixed the record date for the entitlement of 175.5 million stock dividend shares on Oct. 4, 2002, to be paid on Oct. 10 at a price of P4 each.

JDI was the top gainer during last Friday’s trading at the Philippine Stock Exchange, closing P5 or 25 percent higher at P25 per share.

To be able to execute the dividend payout, JDI will implement a two-step change in its authorized capital: first, an increase in the capital stock from P200 million to P910 million out of which P702.13 million will be subscribed and paid in full by way of stock dividend, followed by an equivalent decrease back to P200 million of the authorized capital to distribute the P702.13 million worth of shares as excess capital.

JDI said since its retained earnings of P31.6 million as of year-end 2001 were insufficient to declare as cash dividends, it came up with the capital increase to be able to pay back the P702.13 million dividend, or 400 percent of the issued and outstanding 43,883,173 shares of the company.

The firm added its accumulated excess cash is deposited as short-term deposits at local banks, earning net interest at 3.5 percent.

After the increase, the company will revert back to its authorized capital of P200 million and cancel the 175.5 million stock dividend shares from its books.

"In consideration for the cancellation of the stock dividend shares, the company shall pay the holders thereof P4 per share, amounting to a total of P702.13 million," JDI said.

JDI is one of the oldest and most diversified companies operating in the country, engage in a wide range of activities as a major force in the marketing and distribution of agricultural chemicals in the Philippines.

Through wholly- owned units, subsidiaries, and associates, it also manages building and industrial materials, middle income housing, financial services, corporate services, agricultural supplies and sugar milling.