First Holdings to buy First Gen’s preferred shares

ABS-CBN News

Posted at Jul 14 2011 08:23 PM | Updated as of Jul 15 2011 04:23 AM

MANILA, Philippines - The Lopez-led First Philippine Holdings Corp. will subscribe up to P6 billion of its affiliate’s preferred shares.

In a disclosure to the local bourse, the holdings firm said its board has approved to subscribe up to P6 billion of First Gen Corp.’s cumulative, non-voting, non-participating, non-convertible Series F Preferred Shares issue.

The power generation arm of the Lopez Group earlier revealed plans to raise P7 billion worth of perpetual preferred shares in the second half of the year.

The firm said the proceeds will be used to retire maturing obligations.

The firm also said it has to settle P5 billion worth of debts for 2012 and $130 million in 2013.

First Philippine Holdings holds 76.45% stake in First Gen.