Phinma Energy Corp., which will be renamed AC Energy Philippines Inc., said Wednesday it will increase its capital stock to P24.4 billion to finance planned investments and acquisitions.
“The increase in the company’s authorized capital stock from P8.4 billion divided into 8.4 billion shares to P24.4 billion divided into 24.4 billion shares will be presented to the shareholders for approval,” Phinma Energy said.
The change in corporate name and increase in the capital stock shall also be subject to the approval of the shareholders and the Securities and Exchange Commission.
“In relation to the increase in authorized capital stock, the company plans to raise capital issue through a rights offering. Additional capital will be used for investments in greenfield projects and acquisitions of power assets, including part of AC Energy Inc.’s on-shore power generation and development assets,” it said.
Phinma Energy said any such purchase of AC Energy’s assets will be subjected to third party valuation and approval of the company’s board risk management and related party transactions committee.
Meanwhile, the board of Phinma Energy elected Fernando Zobel de Ayala as chairman of the executive committee, and Jaime Zobel de Ayala as executive committee member to replace those who resigned on July 1, 2019.
AC Energy, the energy platform of Ayala Corp., completed the acquisition of the combined 51.48-percent stake of Phinma Inc. and Phinma Corp. in Phinma Energy Corp., or PHEN, in June.
AC Energy acquired the Phinma Group’s stake through a purchase of secondary shares for P3.669 billion.
AC Energy also subscribed to 2.632 billion PHEN primary shares at par value. Meanwhile, the mandatory tender offer for PHEN shares ended in June 19, with a total of 156,476 shares tendered.
AC Energy, thus, acquired a total of 7.5 billion shares of Phinma Energy corresponding to 68 percent for a total value of P6.3 billion.
“We are pleased to complete this transaction, as we see PHINMA Energy as a platform for AC Energy’s domestic growth,” said AC Energy president and chief executive officer Eric Francia.