ALTERNERGY HOLDINGS Corp. has obtained shareholder approval for the reclassification of its preferred shares in a move aimed at raising capital for various projects.
In a stock market disclosure on Wednesday, the listed energy company said the reclassification of about 1.48 billion preferred shares with a par value of P0.10 had been approved during a special stockholders’ meeting on Tuesday.
The shares will be subdivided into two classifications, namely: “Perpetual Preferred Shares 1” amounting to about 1.18 billion; and nonvoting “Perpetual Preferred Shares 2” for the remaining 300 million.
The 300 million shares are broken down into Series A, B, and C of 100 million perpetual preferred shares per series.
“The reclassification of [Alternergy’s] perpetual preferred shares is in anticipation of our next capital raising exercise to fund our renewable projects,” Alternergy President Gerry P. Magbanua said.
“Our Green Perpetual Preferred Shares Program will allow Alternergy to access a wider base of institutional investors to broaden our sources of capital,” he added.
At the same meeting, an increase in the number of board seats — to nine directors from seven previously — was also approved
“The increase in the number of independent directors will broaden the diversity and breadth of expertise of our Board,” Alternergy Chairman Vicente S. Pérez, Jr. said.
“Alternergy espouses a culture of diversity in terms of experience, expertise, culture, age, gender and orientation. We believe diversity creates greater value to our company’s growth,” he added.
Last week, the company announced that it had tapped three investment banks to lead in raising the P12-billion project financing for its two wind power projects.
The two projects for debt financing are Alternergy’s 55-megawatt (MW) Alabat Island wind power project in Quezon province and its 86-MW Tanay wind power project in Rizal province, which are expected to be completed by 2025.
At the local bourse on Monday, shares of the company went up by one centavo or 1.2% to P0.84 apiece. — Sheldeen Joy Talavera