First Holdings issues P1.8-B preferred shares

MANILA, Philippines - First Philippine Holdings Corp. (FPH), the energy holding company of the Lopez Group, yesterday issued P1.8 billion worth of preferred shares proceeds of which would be used to fund the company’s investments or acquisitions either directly or through its subsidiaries, and to fund other general corporate purposes.

“The corporation issued today as a first tranche a P1.8-billion cumulative non-voting, non-participating, non-convertible and peso-denominated preferred shares as at issue value of P500 per share via private placement,” FPH said in a disclosure to the stock exchange.

Furthermore, FPH said it would issue cash dividends, upon approval of its board of directors.

“As and when declared by the board of directors, cash dividends on the preferred shares were fixed at 5.5 percent per annum. FPH has the option to redeem the preferred shares in whole starting on the seventh anniversary from issue date,” FPH added.

In 2013, the company redeemed and cancelled a total of P9.3 billion of Series A and B preferred shares out of the P20- billion authorized preferred shares capital stock.

The cancellation of preferred shares required an amendment of its articles of incorporation, was ratified by stockholders in the annual shareholders’ meeting last month.

With the cancellation and the reduction of the preferred shares, FPH said its authorized preferred capital stock would go down from P20 billion to P10.7 billion.

FPH is a management and investment company whose major business is power generation and distribution, with strategic initiatives in manufacturing and property development.