Cirtek to issue preferred shares

MANILA, Philippines —  Cirtek Holdings Philippines Corp.  (CHPC) will issue preferred shares to raise capital.

 In a disclosure yesterday, Cirtek said its board of directors approved the creation of 270 million preferred B shares with a par value of one peso per share “for a possible capital raising exercise that will be conducted by the company.”

 “The creation of preferred B shares allows for flexibility in the company’s ability to raise fresh capital,” Cirtek said.

 The company will seek the approval of the Securities and Exchange Commission  to increase its authorized capital stock to facilitate the creation of preferred B shares.

Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated.

The company did not say yet what it plans to do with the proceeds of the share sale but it recently announced plans to embark on more acquisitions as part of its strategy to grow the business.

Cirtek recently acquired US-based Quintel, a leading provider of advanced high-efficiency and high-performance antenna solutions, and sees two more acquisitions in the pipeline.

 It plans to acquire one or two more technology assets in the next one or two years.

CHPC is the holding company of Cirtek Electronics Corp and Cirtek Electronics International Corp.

Through its subsidiaries, CHPC is primarily engaged in two major activities, which include complete manufacturing solutions for value-added, highly integrated radio frequency, microwave and  millimeterwave technology products, smart antenna systems, and providing full service/turnkey solutions including wafer probing, wafer back grinding, assembly, and packaging and final testing of semiconductor devices.