Quasi-re­or­ga­ni­za­tion

Manila Times - - FOREIGN BUSINESS -

P93.302 mil­lion from P40.838 mil­lion from the cor­re­spond­ing six-month pe­riod in 2016.

Ex­ec­u­tive com­pen­sa­tion

Vitarich’s top five highly com­pen­sated ex­ec­u­tives are Ri­cardo Manuel M. Sarmiento, - nie Ni­cole S. Gar­cia, ex­ec­u­tive vice pres­i­dent, cor­po­rate ser­vice man­age­ment di­rec­tor and trea­surer; Joven P. Dy, se­nior vice pres­i­dent for poul­try and foods op­er­a­tions; Guillermo B. Mi­ral­lles, vice pres­i­dent for na­tional feeds sales and pro­duc­tion; and Rey­naldo D. Ortega, vice pres­i­dent and gen­eral man­ager for poul­try and foods di­vi­sion.

- - ec­u­tives as a group P5.4 mil­lion in 2015 and P10.9 mil­lion in 2016. It es­ti­mated the group’s com­pen­sa­tion for 2017 at P14.5 mil­lion.

“All other of­fi­cers and di­rec­tors as a group un­named” at Vitarich were paid P1.1 mil­lion in 2015 and P0.8 mil­lion in 2016. This year, they are ex­pected to re­ceive the same amount of pays and perks of P1.1 mil­lion which they got in 2015.

it paid its 823 em­ploy­ees P112.81 mil­lion in 2016; P132.321 mil­lion in 2015; and P75.131 mil­lion in 2014.

Trea­sury shares

As of Sept. 30, 2017, Aboitiz Eq­uity Ven­tures Inc. ( AEV) re­ported 5.695 bil­lion is­sued com­mon shares, of which 60,807,064 are trea­sury shares, leav­ing the com­pany with 5,633,792,557 out­stand­ing com­mon shares.

P521.132 mil­lion as “trea­sury stock at cost,” which would trans­late to an ac­qui­si­tion price of P8.57 per share.

At AEV com­mon shares’ clos­ing price of P72.10 per share, the 60.807 mil­lion trea­sury shares of Aboitiz Eq­uity had pa­per value of P4.384 bil­lion. This would trans­late to a pa­per gain of P63.53 per share (P72.10 mi­nus P8.57 = P63.53) and a to­tal pa­per gain of P3.863 bil­lion from trea­sury shares.

SOLID Group Inc. ( SGI) said it had 209.433 mil­lion trea­sury shares as of Sept. 30, 2017, out of the com­pany’s 2.031 bil­lion is­sued shares. The trea­sury shares were equiv­a­lent to 11.495 per­cent of 1.822 bil­lion out­stand­ing SGI com­mon shares.

“trea­sury shares at cost” of P115.614 mil­lion, or P0.552 per share.

At SGI’s clos­ing price of P1.46 on Nov. 13, the com­pany scored a pa­per gain of P1.048 per share, or a to­tal of P219.486 mil­lion from 209.433 mil­lion trea­sury shares.

Due Diligencer’s take

Vitarich has read­ied a quasi-re­or­ga­ni­za­tion - cit, which, as of Dec. 31, 2016, amounted to P2.417 bil­lion. It has yet to de­tail how it would erase these ac­cu­mu­lated losses over the years.

The com­pany, which is based in Mar­i­lao, Bu­la­can, pro­duces an­i­mal feeds and also sells dressed chicken, among a num­ber of prod­ucts.

Ap­par­ently, the Sarmiento-con­trolled Vi

Given the lack of de­tails about Vitarich’s quasi-re­or­ga­ni­za­tion plan, Due Diligencer is mak­ing some guesses.

Since Vitarich’s eq­uity is in pos­i­tive ter­ri­tory— P870.012 mil­lion— it needs P1.547 bil­lion as of Dec. 31, 2016. To do this, it plans to re­duce the par value of its cap­i­tal stock. It has 2.786 bil­lion out­stand­ing com­mon shares.

Vitarich should not make the pub­lic stock­hold­ers sac­ri­fice so much of their money. The re­duc­tion to P0.70 per share from P1 par value of Vitarich’s out­stand­ing com­mon shares should be more than enough to erase com­pany’s 2.786 bil­lion out­stand­ing com­mon shares would be equiv­a­lent to P1.951 bil­lion.

By adding to that the re­ported ad­di­tional paid- in cap­i­tal of P224.547 mil­lion and other com­pre­hen­sive in­come of P276.012 mil­lion, the sum of P2.451 bil­lion would even leave Vitarich with re­duc­tion sur­plus of P34.062 mil­lion.

How about the man­agers and ex­ec­u­tives of Vitarich? What could they be cook­ing inside the board­room? Just ask­ing.

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