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Business

FPHC’s $52-M debt  to mature by 2009

- Zinnia B. Dela Peña -

First Philippine Holdings Corp. (FPHC), the holding firm for the Lopez family’s power generation and infrastructure businesses, said it has  $52 million worth of debts maturing in 2009.

FPHC president Elpidio Ibanez said the company may tap the debt market to raise funds for repayment of debt and working capital requirements.

The company plans to undertake a perpetual preferred share offering early next year to raise around P5 billion to increase its stakes in  existing core businesses –  Manila Electric Co., First Gen Corp. and Manila North Tollways Corp. – as well as to fund new strategic investments in infrastructure, manufacturing and property.

At present, FPHC holds a 66 percent stake and 34 percent stake in  First Gen and MNTC, respectively. It may team up with a foreign entity to bid for the government’s  shares in power giant Manila Electric Co. (Meralco).

Ibanez said several foreign entities have expressed interest to partner with the company in acquiring  the government’s 29 percent shareholding in Meralco which will likely  be sold next year.

FPHC earlier entered into two deals that raised its stake in Meralco to 33.4 percent from a near 18 percent.  It bought around nine percent of Meralco in a deal with Spain’s Union Fenosa and also acquired from Meralco Pension Fund a 6.6 percent stake in the utility giant worth about P8.3 billion.

Valued at around $1.8 billion, Meralco supplies power to about four million households and business establishments in Manila.

FPHC earlier raised its capital stock to P32.1 billion from only P12.1 billion in preparation for its planned preferred share offering within the first half of next year.

The increase is intended to create 200 million preferred shares with a par value of P100 per share.

Out of the total increase, P5 billion has been subscribed while P2 billion has been paid for.

vuukle comment

BILLION

ELPIDIO IBANEZ

FIRST GEN

MERALCO

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