Alternergy prefs conversion approved by shareholders

Alternergy [ALTER 0.92, up 1.1%; 18% avgVol] [link] disclosed that its stockholders unanimously approved the conversion of 500 million common shares into a new series of perpetual preferred shares, in preparation for the company’s next round of capital raising. In a statement on 3 September 2025, ALTER said the reclassified shares will be issued as non-voting Perpetual Preferred Shares 2, Series D to H, with a par value of P0.10/share. Each series will consist of 100 million shares, carrying the same features as the existing Perpetual Preferred Shares 2, Series A to C. Gerry Magbanua, company president, said the next fundraising activity will bankroll new renewable energy projects of ALTER, which aims to develop up to 500MW of additional wind, solar, and run-of-river hydro projects by 2026. “Our Green Perpetual Preferred Shares Program will allow Alternergy to access a wider base of both retail and institutional investors to broaden our sources of capital,” Magbanua said.

MB bottom-line: As I’ve covered before, this is a good strategic move that recognizes the demands of the moment, both for the company’s funding needs (prefs are very flexible) but also for what the market wants (fixed-income products). ALTER needed to get at least 66.66% of its outstanding shares to approve the measure, which was probably made easier by the fact that ALTER’s ownership group has a 66.14% stake. They only needed to convince a handful of public shareholders to approve. These kinds of moves would be much more difficult for companies to make if the PSE required listed companies to maintain a larger public float. Just to be clear, this isn’t a good example of the kind of move that might not succeed if the company’s public float were higher. I think they should absolutely do this. But I was just using the vote to demonstrate why there’s so much resistance to the idea of raising the public float requirement.

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