MEGAWIDE Construction Corp. on Monday said its board of directors recently approved a resolution that seeks to increase its authorized capital stock of preferred shares.
In a disclosure to the stock exchange, Megawide said its board of directors agreed to the increase by 26 million to a total of 150 million “cumulative, non-voting, non-participating, non-convertible, perpetual preferred shares.”
The move will increase the company’s total authorized capital stock to P5.08 billion.
The board likewise agreed to accept the subscription of Citicore Holdings Investment, Inc. to 25% or 6.5 million preferred shares of the increase. The holding company is involved in renewable energy projects through its subsidiaries.
A special meeting will be held on May 11 for the approval of the increase in authorized capital stock of preferred shares.
Moreover, they approved the offering for sale of up to 40 million preferred shares by way of public offering or private placement transaction. It will consist of “one or more sub-series, from the unissued authorized capital stock,” Megawide said.
Also on Monday, the company announced that its board of directors had approved the reallocation of the use of proceeds (P4.33 billion) from its “Series 2A and 2B” preferred shares offering in November last year.
The outstanding balance of the proceeds as of Jan. 18 was at P4.11 billion.
Megawide had initially planned to use P1.22 billion of the proceeds for the rehabilitation of the Ninoy Aquino International Airport, but on Dec. 15, the Manila International Airport Authority revoked the company’s original proponent status for the project.
The amount, according to the company, will be used for its existing projects, including Mactan Cebu International Airport multi-use development, development of lot 2 of the Parañaque Integrated Terminal Exchange and other landport locations, and development of the Cebu Integrated Transport Hub, among others.
The company said the scope of such projects will be expanded.
The reallocation of the use of proceeds will be implemented “not earlier than 30 March 2021,” Megawide said. — Arjay L. Balinbin