PhilWeb expands capital stock to P3.6B

MANILA, Philippines — PhilWeb Corp. is raising its authorized capital by P1 billion to P3.6 billion to accommodate tycoon Lance Gokongwei’s P2.03-billion investment and other capital-raising activities.

In a stock exchange filing on Thursday, PhilWeb said its authorized capital stock will increase from P2.6 billion following amendments to its articles of incorporation.

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The new capital structure will consist of 2.55 billion common shares and 1.05 billion preferred shares, each with a par value of P1.

This compares with its previous structure of 1.85 billion common shares and 750 million preferred shares.

“The proposed amendments are intended to provide the corporation with greater flexibility in managing its capital structure and to facilitate future corporate and strategic requirements,” the company said.

The changes would also give its board more leeway in setting the terms and conditions of future share issuances.

PhilWeb said the higher authorized capital will support Gokongwei’s share subscription and other capital-raising activities.In addition, Gokongwei’s investment amounts to P2.03 billion, marking a major capital infusion into the gaming technology company.

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On April 8, PhilWeb’s board approved the amendments, and stockholders approved them on June 24.

The company plans to file the changes with the Securities and Exchange Commission (SEC) on July 7, but it has not yet determined the timing for SEC approval.

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PhilWeb said the amendments would have no immediate material impact on its existing business or operations. The company also revised provisions governing shareholders’ pre-emptive or preferential rights.

Under the amended provision, the board may grant such rights as part of a share issuance or disposition.

PhilWeb’s preferred shares will remain convertible into common shares, cumulative as to dividends, participating and redeemable at the company’s option. The board will set the issue value and dividend rate when it issues the shares. /pai