Music Corp to freeze trading of shares

The Philippine Stock Exchange (PSE) has granted the request of Music Corp. for the voluntary trading suspension of its shares effective yesterday to avoid any confusion arising from the firm’s quasi-reorganization.

In a disclosure to the PSE, Music Corp. said the trading suspension will facilitate the reduction in the number of it’s listed shares.

As a result, trading of Music shares shall be based on the adjusted and reduced number of shares upon lifting of the trading suspension.

Following the reduction in the par value of its shares, the company will subsequently increase the par value of its shares and reduce its capital.

The quasi-reorganization is aimed at wiping out Music’s capital deficiency in line with its plan to absorb the operations of wholly-owned subsidiary Music Semiconductors Phils. Inc. (MSPI).

As of end-September last year, Music has managed to reduce its capital deficiency to P102 million.

Music said its plan to return to a capital surplus involves the continued generation of operating profits and sale of shares.

The company reported a net income of P9.6 million in the third quarter of 2003 and expects profits to reach P30.25 million by the fourth quarter.

As such, the profit generated from the future sale of shares is expected to reduce the company’s deficiency by P40 million in the first half of 2004.

Music intends to raise P60 million to P90 million through the issuance of common shares arising from the increase in its capital stock.

The company had set aside six million share options from the increase in its capital stock to be granted and distributed upon recommendation of the compensation committee.

Music was formerly Music Semiconductors Corp. (an acronym for Multi User Specialty Integrated Circuits), it was incorporated in the Philippines in January 1992 as a subsidiary of Music NV its Dutch parent.

In November 1993, Music Corp. became the parent company as a result of the acquisition of a major stake in the company by Asian Investors and an exchange of shares by existing shareholders.

Music is an investment holding company specializing in identifying key "early state" companies in the networking infrastructure, telecommunications and Internet markets and developing them into mature investments in these communication industry segments.