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By Likha C. Cuevas-Miel, Reporter
FIRST Philippine Holdings Corp. said it is
setting aside a third of the proceeds from a recent share sale to
buy several businesses and the remaining amount to repay debt.
Based on documents from the Securities and
Exchange Commission, the Lopez family holding company is allocating
about P1 billion for acquiring “strategic” control of Manila
Electric Co. (Meralco) and infusing fresh money into subsidiaries,
including First Philippine Infrastructure Inc., First Philippine
Infrastructure Development Corp., and Manila North Tollways Corp.
The holding company would also invest in its
manufacturing businesses. Earlier, First Holdings disclosed to the
Philippine Stock Exchange that it redeemed the series A preferred
shares of First Philec, and would be redeeming the series A
preferred shares of First Philippine Realty Corp. to fund both
subsidiaries’ expansion.
First Philec will pursue the manufacture of
wafer slicing for solar power panels and other projects being
developed in joint venture with Sunpower Philippines Manufacturing
Ltd., an affiliate of US-based Sunpower Corp.
First Holdings is also allocating P1.5 billion
of the estimated P2.94-billion proceeds to repay its outstanding
obligations in the form of fixed rate notes worth $52 million, as
well as a long-term debt with Asia Infrastructure Mezzanine Capital
Fund. The Lopez firm would also be paying obligations to Standard
Bank Asia Ltd. worth $17.9 million.
The balance of the estimated proceeds of the
share sale of around P443 million would be used to finance capital
and operating requirements and other general corporate purposes.
The 30 million cumulative, nonvoting,
nonparticipating, nonconvertible peso denominated Series B perpetual
preferred shares would be issued on March 26 to April 1. BDO Capital
and Investment Corp. was tapped as the issue manager and sole book
runner for the fund raising, wherein the shares would be sold to
sophisticated investors and institutions at a par value of P100
each.
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