First Gen hikes authorized capital stock to P11.6 billion.
By Myrna M.Velasco
Lopez-owned First Gen Corporation has increased its authorized capital stock to P11.6 billion from P8.6 billion via the issuance of additional 300 million series H preferred shares.
As culled from the amended articles of incorporation approved by the Securities and Exchange Commission (SEC), the additional preferred shares issuance of the Lopez firm had been set with a par value of P10 per share or an aggregate value of P3.0 billion.
Authorized capital stock refers to the maximum number of shares that a corporation is legally permitted to issue as specified in its articles of incorporation.
The hike in shares' issuance was approved by the majority of the company's board of directors on their regular meeting on March 15 last year.
That then warranted modification in Article Seven of the company's incorporation, hence, it needed to go through the mandatory filing with the SEC.
Of its total P11.6 billion authorized capital stock, P5.0 billion worth accounts for the issued 5.0 billion common shares of the company with a par value of P1.00 each.
About 1.0 billion is for its Series A to D preferred shares with a par value of P0.50 per share or worth P500 million; 1.5 billion for its Series E preferred shares valued at P750 million; 100 million Series F preferred shares worth P1.0 billion; 135 million Series G valued at P1.35 billion; and 300 million Series H preferred shares for P3.0 billion.
The new Series H preferred shares issuance will be a non-voting stock except in cases provided by law; and the takers will be entitled to receive cumulative dividends.
It has also been stipulated that the stocks "will be redeemable at the option of the Corporation," and in the event of any voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Corporation, such "shall be entitled to be paid at their issue value plus any accrued and unpaid dividends thereon."
First Gen is currently pushing for fresh round of expansion on its investments on power projects as well as its targeted installation of liquefied natural gas (LNG) import facility in the country.