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SEC approves Filinvest capital increase

Published : Wednesday, August 24, 2011 00:00 [ ]

FILINVEST Development Corp. (FDC) has secured the approval of corporate regulators to hike its authorized capital stock.

Documents from the Securities and Exchange Commission showed that the publicly listed holding firm of the Gotianun family obtained regulatory approval to increase its capital stock from P10 billion to P17 billion, creating an additional P5-billion worth of common shares and P2-billion worth of preferred shares.

Out of the increase in capital stock, P1.76-billion worth of shares has been subscribed and paid up in full by way of stock dividends, as approved by the FDC board in April and ratified by shareholders in May.

FDC had put off a secondary share sale scheduled for January because of volatile market conditions.

ALG Holdings Corp., the private holding firm of the Gotianuns, was supposed to sell 2.5 billion shares and then subscribe to the same number of new shares issued by FDC.

The company said it would still pursue its follow-on offering in tranches so it could comply with the 10-percent minimum public ownership requirement of the local bourse. The follow-on offering intends to raise the company’s public float to 30 percent from the current 6 percent.

Proceeds from the offering were supposed to finance the development of its real estate and hospitality business, increase its bank capitalization, finance its infrastructure and utilities business, and pay down debt.

Last month, FDC said it entered into a subscription agreement with ALG Holdings, issuing 49.80 million common shares out of the listed company’s unissued capital stock at P5 each.

The P249 million was used to increase the capitalization of its power generation unit FDC Utilities Inc.

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