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First Philippine Holdings Corp. will sell to the public through a
follow on offering its Series “B” perpetual preferred shares
next month.
The Lopez-led firm disclosed to the Philippine
Stock Exchange that it would be listing up to 50 million of the said
shares with a par value of P100 each, consisting of 30 million
shares that would be sold to the public. The balance of 20 million
preferred shares would cover for the over-allotment option priced at
P100 each, which may be exercised on or after the dividend rate
setting date on April 4 and before the offer period starting April
10 until 17.
BDO Capital and Investment Corp. was tapped to
be the issue manager and sole book-runner for this exercise that is
expected to raise about P3 billion.
Based on earlier documents filed with the
Securities and Exchange Commission, FPHC has allocated about P1
billion for the strategic acquisition of Manila Electric Co. shares
and investments in several of its subsidiaries that include First
Philippine Infrastructure Inc., First Philippine Infrastructure
Development Corp., and Manila North Tollways Corporation .
The parent firm plans to invest more in its
manufacturing businesses, some of which are related to the power
industry. FPHC has redeemed the series A preferred shares of First
Philippine Electric Corporation (First Philec) and the series A
preferred shares of First Philippine Realty Corporation to fund both
subsidiaries’ expansion. First Philec needed funds to manufacture
wafer slicing for solar power panels and other projects being
developed in its joint venture with Sunpower Philippines
Manufacturing Ltd., an affiliate of US-based Sunpower Corp.
Meanwhile, FPHC is allocating P1.5 billion of
the estimated P2.94-billion proceeds to repaying its outstanding
obligations in the form of fixed rate notes worth US$52 million and
long term debt with Asia Infrastructure Mezzanine Capital Fund. The
Lopez firm would also be paying its debt with Standard Bank Asia
Ltd. worth $17.9 million.
The balance of the estimated proceeds of the
preferred shares around P443 million would be used to finance
capital and operating requirements and other general corporate
purposes.
-- Likha Cuevas-Miel
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