PAL Holdings seeks SEC nod on capital hike to P30B

PAL Holdings seeks SEC nod on capital hike to P30B
Philippine Airlines (PAL) planes are seen parked on tarmac in Manila International Airport in Pasay city, Sept. 9, 2014. — REUTERS/ROMEO RANOCO/FILE PHOTO

PAL Holdings, Inc. has filed an application with the Securities and Exchange Commission (SEC) for a capital increase to P30 billion and an amendment to its articles of incorporation.

The holding company of Philippine Airlines said in a stock exchange disclosure on Friday that it filed an application with the SEC on Dec. 29 to amend its seventh article of incorporation and increase its capital stock to P30 billion divided into 30 billion common shares at P1 per share.

The proposed amendment is more than double PAL Holdings’ current capital stock at P13.5 billion divided into 13.5 billion common shares at P1 per share.

“The purpose of the proposed increase of authorized capital of the issuer is to accommodate the fresh infusion of capital into the company by an affiliate company of the Lucio Tan group of companies,” PAL Holdings said in the disclosure.

“The new capital will in turn be invested into issuer’s subsidiary, PAL, pursuant to the court-supervised reorganization of PAL,” it added.

In November, PAL Holdings said in a disclosure that its shareholders had approved the aforementioned capital increase and amendment to its articles of incorporation.

Aside from approving the capital increase, the shareholders also approved the issuance of 10.2 billion shares by private placement to Lucio C. Tan’s Buona Sorte Holdings, Inc. and the waiver of the requirement of the Philippine Stock Exchange to conduct a public offering for the issuance of the said shares. — Revin Mikhael D. Ochave