Globe eyes P1B for capex to further upgrade system

By Riza Lozada

Telecommunications giant Globe Telecom seeks to raise P1 billion from the issuance of 20 million non-voting preferred shares, the proceeds for which will be used to fund its capital expenditures.

Local telecommunications firms are upgrading services after complaints from consumers slow Internet connections.

In a report to the Philippine Stock Exchange, the company said its officials will soon provide details on the issuance, offering and listing of the 20 million non-voting preferred shares with par value of P50 per share.

The listing of non-voting preferred shares will also be a main agenda during the company’s annual stockholders meeting on April 13 next year.

Globe said that the creation of the 40 million non-voting preferred shares and the issuance, offering and listing of the first batch of 20 million shares were approved during the 2014 annual stockholders meeting.

“This round of issuance, offering and listing of non-voting preferred shares will be used to fund the company’s capital expenditures,” Globe said.

Globe said its board ap-proved on February 10, 2014, the amendment of articles of in-corporation (AOI) to reclassify 31 million of unissued common shares with par value of 50 per share and 90 million of unis-sued voting preferred shares with par value of 5 per share into a new class of 40 million non-voting preferred shares with par value of 50 per share.

“On April 8, 2014, the stockholders approved the is-suance, offer and listing of up to 20 million non-voting pre-ferred shares, with an issue volume of up to 10 billion. The non-voting preferred shares shall be redeemable, non-con-vertible, non-voting, cumula-tive and may be issued in se-ries. Proceeds from preferred issuance shall be used to par-tially finance capital expendi-ture for the year,” Globe said.

On June 6, 2014, the Se-curities and Exchange Com-mission (SEC) approved the amendment of the Globe charter to implement the reclassification of shares.

The SEC subsequently ap-proved the offer of non-vot-ing perpetual preferred shares and on August 15, 2014, the 20 million non-voting preferred shares were ful-ly subscribed and issued. The shares were listed at the Philippine Stock Exchange on August 22, 2014.