LISTED seafood processor Alliance Select Foods International said on Friday it is embarking on an equity restructuring program to wipe out its current deficit as it expects to sustain healthier revenue growth with its turnaround strategy.
“As we complete our turnaround strategy this 2017, we want to restart with a clean slate and position the company to declare dividends moving forward, and at the appropriate time,” Alliance Select President and Chief Executive Officer Raymond KH See said in a disclosure to the Philippine Stock Exchange.
Subject to regulatory approvals and shareholders’ approval, Alliance Select’s par value will be reduced from P1.00 to P0.50, it said.
As the equity restructuring will not reduce the number of outstanding shares and will not change a stockholder’s ownership interest in Alliance Select, the company’s intrinsic value would be preserved.
Equity restructuring is the process of reorganizing the equity capital of a company through such transactions as a stock dividend, stock split, spin-off, rights offering or recapitalization, usually to clean up a company’s balance sheet.
Alliance Select noted that other Philippine companies that have embarked on a similar program include DFNN Inc., Philippine Realty and Holdings Corporation, and Millennium Global Holdings, Inc.
Alliance Select is a home-grown international seafood company which exports its products to the US, Europe, Japan and the Middle East.
It employs local communities at its tuna processing plant in General Santos City.