Metro Global Holdings Corp. plans to conduct P3.75-billion share sale to finance renewable energy projects.
MGH said in a disclosure to the stock exchange it planned to issue new shares to partially cover the proposed increase in its authorized capital stock to P10 billion, or 10 billion shares from P5 billion, or 5 billion shares.
Under the plan, MGH’s parent Fil-Estate Management Inc. (FEMI) will subscribe to 1.25 billion commons shares from the increase in the authorized capital stock at P1 apiece.
MGH said it planned to offer to the public the unsubscribed portion equivalent to 3.75 billion common shares at P1 per share.
The proposed capital hike will be presented for approval to shareholders during the company’s annual stockholders meeting next month.
It said the public offering of the unsubscribed shares would be subject for approval by the board of directors, while the timing would depend on the approval of the Securities and Exchange Commission (SEC) on the proposed increase in capital stock.
MGH said that upon completion of FEMI’s subscription, its public float would decrease to 7.5 percent, below the 10-percent required by the Philippine Stock Exchange to remain listed on the local bourse.
MGH said, however, its public float might increase once the unsubscribed shares were offered to the public.
MGH reported plans in 2018 to invest in development of renewable energy through solar farms, wind farms, waste-to-energy and other energy projects.
It acquired FEMI’s 100-percent equity stake in Metro Solar Power Solutions Inc., a company with an existing 65-megawatt solar farm in Pililia, Rizal.
MGH also has investments in companies engaged in infrastructure development of light rail systems through Metro Rail Transit Corp. and Monumento Rail Transit Corp Inc. and property development through MRT Development Corp.
Trading of MGH’s shares was suspended in February 2007.