Of Philex Mining Corp.'s 8-man board, 7 directors voted in favor of hiking to 30 from 20 percent the stake to be sold to investors, effectively allowing one of its current stockholders, pension fund Social Security Systems, to increase its current stake.
SSS chief Romulo Neri earlier cried foul when the mining firm decided to sell its originally planned 20 percent stake to First Pacific Co., Ltd.
Neri said Philex should have honored the government-run fund's right of first refusal.
SSS currently has 18.4 percent stake, which would have been diluted if First Pacific bagged the additional shares for sale.
Neri did not attend the board's special meeting last Friday when all the directors agreed on a “resolution to offer to sell and/or issue to all its existing shareholders, pro rate to their shareholdings, common shares of Philex representing an aggregate amount of 30 percent of the resulting total issued and outstanding capital stock at the price of P7.92 per share”.
The increased stake for sale would mean higher proceeds for the listed mining firm estimated at about P9 billion.
In a disclosure to the stock exchange Monday, Philex said the offer shares shall comprise of treasury and primary shares.
“Philex shall, as far as practicable, and to the extent that the rules of the Securities and Exchange Commission and/or the Philippine Stock Exchange permit, allow First Pacific Company, Ltd. to acquire such offer shares,” it stated.
The directors present at the meeting reiterated their belief that the sale of the treasury shares to First Pac is highly beneficial to Philex and its stockholders.
In the revised proposal, Philex said FirstPac has confirmed its commitment to buy at least 778,444,065 shares or about 20 percent of the company at an agreed price of P7.92 per share.
In addition, FirstPac will also have the option to acquire any unsubscribed portion of the offer shares.