PHILIPPINE Telegraph & Telephone Corp. (PT&T) announced on Thursday that its board of directors had approved a proposed increase in the company’s authorized capital stock not exceeding P11.8 billion from the current P3.8 billion.
“The increase in PT&T’s authorized capital stock was approved in anticipation of the expansion and development of its business and its compliance with the debt-to-equity conversion mandated under the Rehabilitation Plan,” the company said in a disclosure to the stock exchange.
“The increase in the number of common shares shall allow PT&T to raise additional funding for its business operations while the additional preferred shares will be issued to creditors under the debt-to-equity conversion scheme which will be implemented after PT&T has secured the required Deeds of Assignment from its creditors,” it added.
PT&T said the decision was made at its regular meeting held on July 28.
In the company’s amended articles of incorporation, its authorized capital stock will be increased to an amount to be determined by the board of directors but not exceeding P11.8 billion.
The authorized capital stock is divided into: not exceeding 3 billion common shares at P1 per share, and not exceeding 8.8 billion serial redeemable preferred shares at P1 per share and subject to specific features to be determined by the board of directors, consisting of 6.75 billion series “A” serial redeemable preferred shares, 1.8 billion series “B” serial redeemable preferred shares, and 250 million series “C” serial redeemable preferred shares.
“The capital structure of PT&T will be affected once the shares resulting from the increase in authorized capital stock have been subscribed,” the company said. — Arjay L. Balinbin
