Lodestar reorganizes to clean balance sheet

MANILA, Philippines - Publicly-listed Lodestar Investment Holdings Corp. will undertake a quasi-reorganization aimed at cleaning up its balance sheet and expanding its business portfolio.

In a disclosure to the Philippine Stock Exchange, Lodestar said the plan involves the reduction in the par value of its shares from P1 to 10 centavos, resulting in a stock split of 10 shares for every share owned.

“Such reduction in par value will provide the company more flexibility in implementing future actions aimed at distributing economic benefits to the shareholders such as declaration of stock dividends and buy back programs,” Lodestar said.

The move is also expected to make it easier for the company to cater to the small and medium-sized investors who are interested to invest in the firm, Lodestar added.

A share buy back program policy is adopted depending on the company’s retained earnings and market prices under such terms and conditions to be determined and set by the board of directors of the corporation. 

Lodestar will then raise its authorized capital stock from P100 million to P300 million, divided into three billion common shares. The infusion of new capital shall allow the company to implement its proposed one-for-one stock rights offering, invest in new businesses and acquire projects through share-swap scheme. 

The company is currently looking at prospects in high growth sectors and industries – such as information and communications technology (ICT) and retail trade business.

Lodestar also authorized its chairman to effect and consummate for and on behalf of the corporation the share swap arrangement with Abacus Consolidated for the acquisition of the shares of stock of Abacus Coal Exploration and Development Corp. (Abacoal) under such terms and conditions deemed most favorable and beneficial for the company.