SEC approves FPHC capital hike

The Securities and Exchange Commission (SEC) has approved the increase in capital stock of the Lopez-owned First Philippine Holdings Corp. (FPHC) from P12.1 billion to P32.1 billion.

The increase was intended to create 200 million preferred shares with a par value of P100 per share.

Out of the total increase, P5 billion has been subscribed while P2 billion has been paid for.

Among those who subscribed to the capital increase were FGHC International Ltd. (P2 billion), First Philippine Electric Corp. (P1.5 billion), and First Philippine Realty (P1.5 billion).

FPHC, the holding firm for all power generation and tollways interests of the Lopez family, earlier said it was planning to raise P5 billion from a preferred share offering in the first half of 2008.

Proceeds from the preferred share sale will be used to increase the company’s stakes in  existing core businesses – Manila Electric Co., First Gen Corp. and Manila North Tollways Corp. – as well as to fund new strategic investments in infrastructure, manufacturing and property.

At present, FPHC holds a 66 percent stake and 34 percent stake in  First Gen and MNTC, respectively.

FPHC has P4.819 billion worth of debts maturing in 2009.

With the acquisition of additional stake in Meralco and new debt, FPHC’s total liabilities would increase to P24.59 billion from P16.49 billion.

FPHC earlier signed a dual tranche floating rate note facility of about $300 million with several financial institutions to fund the acquisition of a 9.1 percent stake in Meralco.

BDO Capital and Investment Corp. was the lead arranger and sole bookrunner of the facility.