Petron Corp plans to issue preferred shares to raise funds

28-Oct-09

Philippines' major refiner Petron Corp. plans to issue preferred shares to raise funds to finance additional improvements at the Bataan refinery as well as its retail network expansion program. Construction of additional refinery units will include a second petro fluidized catalytic cracking unit that will enable the full conversion of residual products to more valuable gasoline, diesel, liquefied petroleum gasoline and propylene. The board executive committee has to decide on the specific features of the preferred shares, including but not limited to the number, price, method and timetable for the issuance. Petron is looking to raise between P10-15 bln from the issuance. In a disclosure to the Philippine Stock Exchange, Petron plans to reclassify a total of 624,895,503 unissued common shares with a par value of P1 per share to 624,895,503 preferred shares with a par value of P1 per share. There will be no more unissued common shares after the reclassification of the unissued common shares. The preferred shares will comprise the increase in the corporation's authorized stock from P10 billion to P25 billion as approved by its board in February and by the stockholders in May, and disclosed in March.