With the expanded capital, Fil-Hispano will issue new shares to ACSH in exchange for the acquisition of ACSH’s call center subsidiary All Asia Customer Service Inc. (ACSI).
ACSH shall initially subscribe to 135 million Fil-Hispano shares out of the increase in capital stock and pay the amount of P85 million. Priced at P1 par value, the balance of P50 million shall be paid thereafter.
ACSH will subscribe to a total of 414.12 million Fil-Hispano shares out of the unissued authorized capital stock, to be paid through the assignment of shares in Advanced Contact Solutions Inc., which will be the new corporate vehicle for the call center assets and operations of ACSI.
Prior to the subscription of shares, Fil-Hispano will also set up a new subsidiary, Fil-Hispano Corp., to hold, sell or assign its remaining real estate properties in Calauan, Laguna.
Fil-Hispano declared a 35-centavo per share cash dividend and a property dividend consisting of one share for every Fil-Hispano share held by stockholders of record as of Jan. 15, 2004, both payable after the Calauan properties are transferred to Fil-Hispano.
As a holding company, Fil-Hispano was principally engaged in the manufacture and sales of ceramic wall and floor tiles. In 1999, however, the company decided to shut down permanently its ceramic tile manufacturing facilities due to unprofitable operations.
Since then, the company has developed a business plan to raise funds to retire its existing loans, to fund costs related to its reorganization and to invest in companies engaged in Internet, high-technology, media, communication, leisure and entertainment business ventures.