PAL Holdings Inc., the parent company of the country’s flag carrier, said the Securities and Exchange Commission approved its request to decrease its capital stock to P13 billion from P30 billion.
PHI also secured a green light from the SEC to increase the stock’s par value to P1 per share from P0.45 per share, thereby decreasing the number of shares corresponding to the authorized and subscribed capital stock without increasing the authorized capital.
The SEC also approved PHI’s share swap transaction with the shareholders of Zuma Holdings and Management Corp., where PHI agreed to issue 19 shares for every one Zuma share surrendered.
As a result, PHI will issue a total of 1.65 billion shares from its authorized but unissued capital stock in favor of Cosmic Holdings Corp. and Horizon Global Investments Ltd.
PHI’s move to restructure its equity was a part of the possible entry of a new strategic investor this year or next year.
PAL president and chief operating officer Jaime Bautista earlier said the airline was currently in talks with possible investors. The investor is expected to acquire up to 40 percent of the flag carrier.
PAL tapped Morgan Stanley as financial advisor for the transaction.
PAL earlier posted a net loss of P3.5 billion in January to September of 2017, a downturn from the P2.96-billion total comprehensive income recognized in the same period in 2016.
Revenues rose 15.6 percent in the nine-month period to P98.63 billion from P85.35 billion a year earlier.