PHILIPPINE STAR: First Gen to list P15-billion rights offer
December 10, 2009

First Gen Corp., the power generation unit of the Lopez Group, has set the listing of its P15-billion rights offer on Jan. 22, 2010.

In a disclosure to the Philippine Stock Exchange, First Gen said they would come up with the pricing of the rights offer on Dec. 15, and undertake the offering from Jan. 8-14, 2010.

The record date for the offering is on Dec. 29, 2009.

Earlier, First Gen disclosed plans to raise its authorized capital stock to P7.25 billion from P3.27 billion in line with the company’s rights issue.

According to First Gen, the proposed capital increase comprises 3.23 billion common shares (with a par value of P1 per share) and 1.5 billion voting preferred shares (with a par value of 50 centavos per share).

First Gen said the rights offering will strengthen the company’s balance sheet.

 “The proceeds of the rights offering will be used to provide additional liquidity to manage the company’s debt position and for other general corporate purposes,” it said.

The company said the capital raising scheme is an equitable fundraising option because existing eligible shareholders will have the opportunity to subscribe their pro-rata shareholding in the company and thus not be subject to dilution.

 “Allowing existing eligible shareholders to participate in a non-dilutive fundraising exercise by way of a rights offer was among the principal considerations of the equity financing transaction,” it said.

First Gen said the increase in authorized capital stock is intended to provide for the share capital requirements of the rights offer which may vary depending on the fluctuations in the company’s share price between now and the date the rights offer price is determined.

The proposed increase in capital stock, the company said, also takes into consideration the company’s need to maintain adequate authorized capital stock to allow for the issuance of additional shares related to adjustments in the conversion price of the company’s outstanding convertible bonds as a result of the rights offer and other corporate actions.

As of March 30, 2009, First Philippine Holdings Corp. (FPHC) owns 68.6-percent interest in First Gen.

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