In a disclosure to the Philippine Stock Exchange (PSE), Semirara said yesterday it has already filed with the SEC an application for its proposed restructuring which resulted in the suspension of trading of its shares by the Philippine Stock Exchange (PSE) starting yesterday.
The restructuring plan involves a decrease in its authorized capital stock from P1.81 billion divided into 1.66 billion common shares to P21.37 million divided into 21.37 million shares. It also entails a decrease in the firm’s issued and outstanding capital stock from P1.63 billion worth of common shares to P5.34 million.
Thereafter, Semirara shall raise its authorized capital stock from P21.37 million to P100 million. DMCI shall subscribe to the 19.66 million common shares out of the increase in its authorized capital stock at P1.05 per share or for a total value of P20.64 million.
Semirara said the restructuring is intended to substantially eliminate existing accumulated deficit in retained earnings as of the fiscal year ended Dec. 31, 2002 amounting to P1.62 billion. The restructuring is also intended to retire and cancel its 15,000 preferred shares and to infuse new capital.
The company may apply for additional listing of shares in respect of unlisted portion of its post-restructuring authorized capital stock.
Depending on the availability of retained earnings after the restructuring, Semirara would most likely purchase the fractional shares from the stockholders for cash.
Semirara hopes to complete its restructuring program by the end of this month after it secures the necessary approval from the SEC of the decrease and increase in its capital stock.
The company was incorporated to explore, develop and mine the coal resources in Semirara Island. It is the largest coal producer in the country, contributing 1.306 million metric tons (MT) or 96.54 percent to total domestic coal production in 2001.
It generates 100 percent of its revenues through the production of sub-bituminous coal. In 2001, the power generation sector accounted for 99.6 percent of the company’s total sales while the cement manufacturers contributed a minimal 0.4 percent.
Historically, approximately 90 percent of the company’s revenue streams are from the National Power Corp. (Napocor).
The Napocor’s consumption of Semirara coal has steadily increased since the company worked on improving the quality of its coal.