MANILA, Philippines - The Philippine Stock Exchange has approved the listing of San Miguel Corp.’s P65.5 billion worth of preferred shares.
San Miguel will list today 873.17 million Series 1 preferred shares with a par value of P5. These preferred shares, issued on Oct. 5, 2009 for P75 per share, will cover San Miguel’s previous offer to exchange common “A” or “B” shares on a ratio of one share for every one share held.
Of the total shares to be listed, only 36.63 million preferred shares will be qualified for trading since only these shares are “ready for lodgment with the Philippine Depository & Trust Corp. on the scheduled listing date.”
The Supreme Court has given the green light to San Miguel’s plan to convert some common shares to non-voting preferred shares last February. The conversion is part of the diversifying conglomerate’s strategy to raise funds and engage shareholders who may seek to assume a different risk profile in light of the company’s new investments.
San Miguel has recently diversified into capital intensive businesses like oil (Petron Corp.), power distribution (Manila Electric Co.), telecommunications (Liberty Telecommunications Holdings Inc.), and infrastructure.
Unlike common stocks, preferred shares have a higher claim on the assets and earnings of the company. However, they don’t have voting rights.
San Miguel has the option to redeem the preferred shares on the third year of the issue.