FLI hikes capital to P33 billion

 

FLI hikes capital to P33 billion

FILINVEST Land Inc. (FLI) is raising its authorized capital for the second time this year, to accommodate the issuance of additional shares to cover stock dividend and the conversion into common shares of the company’s borrowings.
           
In a filing, FLI said it will increase its authorized capital from P16 billion to P33.08 billion, consisting of 33 billion common shares at par value of P1 each and 8 billion preferred shares at P0.01 per share.
           
In including preferred shares in its capital stock, FLI said its charter would provide for their issuance “from time to time in one or more series” subject to the approval by its board.
           
FLI said the amendments to Article VII of its Articles of Incorporation would remove preemptive rights generally enjoyed by existing stockholders over “any new or additional issue or sale of stock of any class…”
           
The board, FLI said, may also decide to any of the preferred shares sub-series to be convertible to common shares.
           
In January, the Securities and Exchange Commission (SEC) approved the increase in FLI’s authorized capital stock to 16 billion common shares from 10 billion common shares at par value of P1 each.
           
FLI said the additional capital was intended to accommodate the 25-percent stock dividend and the conversion of P164.2-million portion of the P1.2-billion convertible bonds.
           
The bonds were issued to Reco Grandhomes of Singapore and were eventually acquired by Filinvest Development Corp. (FDC), the majority stockholder of FLI.
           
FDC and FLI are controlled by the Gotianun family.
           
FLI told the Philippine Stock Exchange and the SEC that it would now allow the conversion of the remaining portion of its convertible bonds.
           
The company told regulators that it will issue 616 million common shares out of the proposed increase in authorized capital stock to FDC “as a result of the conversion by FDC of the remaining FLI convertible bonds purchased earlier by FDC from previous bondholder.”
           
At the same time, FLI said the increase would cover the declaration of 25-percent stock dividend, to be taken from unrestricted retained earnings as of December 31, 2005.
           
As of end-2005, FLI reported unrestricted retained earnings of P8,164,627,000. Emeterio Sd Perez

Business Mirror

October 9, 2006
http://www.businessmirror.com.ph/comp02.php