CLI shareholders OK P5-B public offering

SHAREHOLDERS of property developer Cebu Landmasters Inc. (CLI) have ratified the company’s public offering of P5.0 billion worth of Series A preferred shares.

In a filing with the stock exchange, CLI said that its stockholders, in a special meeting on Wednesday, authorized the issuance of an initial 3.0 million preferred shares plus an oversubscription option of up to 2.0 million shares, at a price of P1,000 apiece.

The CLI board was also granted the “power and authority to determine the manner of issuance, sale and distribution of Series A preferred shares and the terms and conditions of the offer.”

Shareholders representing 76.3 percent of outstanding capital stock gave the go-ahead for the offer, CLI said, with the next step being securing regulatory approvals from the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange Inc. (PSE).

“The offer shares, which are redeemable starting on the fourth anniversary of the issue date or on any dividend payment thereafter, will be denominated as Series A-1 preferred shares, while those which are redeemable on the seventh anniversary of the issue date, or on any dividend payment thereafter, will be denominated as Series A-2 preferred shares,” it added.

The CLI board last month approved the offering, along with the disclosures contained in the registration statement, prospectus, information statements, listing application and other documents to be submitted to corporate regulators and stakeholders.

Details as to which firms would be tapped as underwriters, issue managers, coordinators, arrangers, bookrunners, stock transfer agents, counsel and advisors for the public offer have yet to be disclosed.

The SEC in January approved CLI’s plan to reclassify 1.0 billion unissued common shares into 1.0 billion Series A preferred shares with a par value of P1.00 with the issuance of the certificate of filing of the amended articles of incorporation.

On Wednesday, CLI shares dropped by 2 centavos, or 0.76 percent, to close at P2.62 each amid a 0.39-percent rise in the benchmark PSE index.