Posted on 09:18 PM, November 25, 2010 [ BusinessWorld Online ]
GOTIANUN-LED holding firm Filinvest Development Corp. has secured minority approval for several fund generation schemes, the company said yesterday.
Following the stockholders’ meeting yesterday, the company secured the “approval of the increase in the authorized capital of the company from P10 billion to P17 billion.”
The new shares are composed of five billion common shares with a par value of P1 each, with a total par value of P5 billion and two billion preferred shares with a par value of P1 per share, with a total par value of P2 billion.
Preferred shares are not entitled voting rights. In liquidation, holders of preferred shares will be able to redeem the full value of the shares.
Minority shareholders also granted “authority to the board to fix any additional terms and conditions of the preferred shares as may be in the best interest of the company.”
Meanwhile, the holding firm will raise fresh capital through a share sale.
Under the fund-raising scheme, ALG Holdings Corp., the parent of Filinvest Development, will sell not more than three billion shares in the listed holding firm. Filinvest Development will then issue new shares of the same amount and volume, which will be subscribed to ALG Holdings.
Price of the share sale will be determined by a lead manager, which has yet to be appointed, Filinvest Development said.
Consolidated net income of Filinvest Development jumped by 94% to P1.9 billion in the first half as its property unit Filinvest Land, Inc.reported an uptick in revenues.
Filinvest Development is also into banking and financial services through East West Banking Corp., and sugar operations through Pacific Sugar Holdings Corp., Davao Sugar Central Co., Inc., Cotabato Sugar Central Co., Inc., and High Yield Sugar Farms Corp.
Shares in Filinvest Development, which was incorporated in 1973 to consolidate real estate operations of the Gotianun family, closed 11 centavos cheaper at P4.49 each. -- Neil Jerome C. Morales