SMC to redeem old preferred shares

MANILA, Philippines – Diversifying conglomerate San Miguel Corp. said yesterday it would redeem its old series of preferred shares and use the proceeds from which to cover cash dividends.

In a disclosure to the Philippine Stock Exchange, San Miguel said the shares will be redeemed at P75 each and shall be in accordance with the terms and conditions of the issuance of the shares.

The redemption of the shares was approved by the company’s board last Aug. 13.

“Proceeds from the redemption of the shares and all accumulated unpaid cash dividends shall be paid on Oct. 5, 2012 to the stockholders of record as of Sept. 11, 2012,” San Miguel said.

San Miguel launched last month a retail offering of preferred shares estimated to fetch up to P80.025 billion. The offer period will run until this Friday, Sept.14.

The offering was the largest capital-raising program ever in the local market.

Proceeds from the offering will be used to redeem the company’s existing P72.8 billion Series 1 preferred shares. These shares were issued in 2009 to stockholders who agreed to convert their common shares to preferred shares.