SEC approves capital restructuring of EasyCall

The Securities and Exchange Commission (SEC) has approved the capital restructuring program of Easycall Communications Philippines Inc. intended to reduce the company’s capital deficiency.

Under the program, EasyCall will undertake a stock split where the authorized capital stock will be reduced by a ratio of 5:1 to 60 million shares, from 300 million shares. This would increase the company’s par value to P5 per share from P1. The issued and outstanding capital stock will stand at 31.9 million shares with a par value of P5.

A stock split entails the increase or decrease in the company’s number of outstanding shares of stock to make the shares more marketable, without any change in stockholders’ equity.

After the stock split, EasyCall would then reduce the par value of the shares from P5 to P1 for both the authorized capital of 60 million shares and the issued and outstanding shares of 31.9 million shares.

With the reduction in par value, a reduction surplus of P127.61 million will be recognized in the books of the corporation. This would bring down the company’s cumulative deficit to P70.27 million.

Thereafter, EasyCall would raise its capital to P300 million from P60 million with a par value of P1 per share. One of the major shareholders, Global e-Business Solutions Inc. of the Delgado group, committed to subscribe to a minimum of P60 million to the capital hike.

Other shareholders may opt to infuse or subscribe to the additional capital increase in proportion to their percentage holdings. Global e-Business Solutions Inc. likewise committed to continue to support the financial requirements of EasyCall.