Published
By Myrna M. Velasco
As part of its
financial de-leveraging strategy, First Gen Corporation is embarking on a
two-year share buy-back program that will cover up to P10 billion of the
company’s “Series G” preferred shares.
Further, the company
will be exercising buy-back program covering up to 300 million of First Gen’s
common shares.
The Lopez firm, in a
disclosure to the Philippine Stock Exchange (PSE), has noted that “the maximum
amount of shares and buy-back period will be subject to revision by (its) board
of directors from time to time as circumstances warrant,” and subject to proper
disclosures to regulatory agencies.
The company, however,
qualified that “the program will not involve active and widespread solicitation
from shareholders in general – and not adversely affect the company’s
prospective and existing development projects.”
It emphasized that “the
program will be executed in open market through the trading facilities of the
PSE.”
The firm indicated that
such shall also be implemented under the supervision of the company’s chief
executive officer, president and chief operating officer as well as the chief
finance officer.
On the common shares
buy-back program, it was similarly stipulated that “the company will undertake
a buy-back transaction only if and to the extent that the price per share is
deemed undervalued or highly volatile, or in any other instance, where the
company believes that the buy-back will result in enhancing shareholder value.”
On the redemption of
Series F preferred shares, First Gen noted that it targets to accomplish this
by July 25 this year, “by paying in cash and in same day funds the applicable
redemption value of R100.00 to all holders of the Series F preferred shares,”
as of the prescribed date.
In the same meeting
last week, the company’s board directors had given go-signal on the declaration
of cash dividends of P4.00/share on all outstanding Series F preferred shares;
and P3.8904/share on the 113,105,520 outstanding Series G preferred shares.
Additionally, cash
dividend declaration of P0.38904/share had been similarly approved for the
13,750,000 outstanding Series G preferred shares issued to First Philippine
Holdings Corporation – done by way of private placement.
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