The shares, which will be sold at P5 per share, are non-convertible into common shares and have no voting rights.
AC managing director Renato Marzan said the shares are redeemable in full via payment in cash of 100 percent of issue price at the end of the fifth year from issue date.
Marzan said the company’s executive committee has been authorized to approve the final terms and conditions of the issue in the event that the shares are issued prior to the holding of the next board meeting.
The conglomerate has $150 million worth of obligations maturing in 2004 and 2005.
AC’s wholly-owned subsidiary AC International Finance Ltd. earlier secured a $100-million syndicated term loan facility from BNP Paribas, Standard Chartered Bank and ING Bank.
The loan will be used to refinance AIFL’s maturing obligations in 2004 and 2005.
At the same time, Marzan announced that the company’s board approved the declaration of a three centavo cash dividend, payable on Jan. 21, 2004. The dividends will be covered by the company’s unappropriated retained earnings as of end-Dec. last year.
The board also approved the change in the schedule of the annual stockholders meeting holding from April to March beginning next year. In line with this, the board agreed to hold the next annual stockholders meeting on March 26, 2004.
AC is the holding company of the Ayala group of companies, the largest conglomerate in the Philippines. Among its core businesses are real estate and hotels, financial services, telecommunications, and international operations.
Among its subsidiaries include Ayala Land Inc., Globe Telecom, Bank of the Philippine Islands, Manila Water Company Inc., Integrated Microelectronics Inc., iAyala Company Inc., Ayala Automotive Holdings Corp., and Ayala International Pte. Ltd.
AC has been constantly looking at structurally attractive industries in the Philippines and select markets abroad where it feels it can achieve a position of leadership.
The company continues to deliver steady growth in its earnings. It reported a 13 percent increase in its net income to P2.39 billion last year from P2.1 billion in 2001, driven by the improved performance of its real estate and telecommunications units.