By James A. Loyola
PAL Holdings, Inc., the parent company of flag-carrier Philippine Airlines, has voluntarily sought a five-day suspension of the trading of its shares at the Philippine Stock Exchange (PSE)due to the approval of its planned quasi-reorganization.
In a disclosure to the Philippine Stock Exchange, the firm said the 5-day voluntary trading suspension will be January 3 to 9, 2018 due to approvals of certificates by the Securities and Exchange Commission (SEC).
The SEC approved the decrease in PAL Holdings’ authorized capital stock to P13.5 billion from P30 billion by changing the par value from P1.00 to R0.45 per share.
The regulators also approved a subsequent increase in par value from P0.45 per share back to P1.00 per share resulting in the decrease in the number of shares corresponding to the authorized and subscribed capital stock of the Corporation.
Also approved was the Valuation of Shares made in connection with PAL Holdings’ share swap transaction with the shareholders of Zuma Holdings and Management Corporation wherein PAL agreed to issue 19 shares for every one Zuma share surrendered.
As a result, PAL will issue a total of 1.65 billion shares from its authorized but unissued capital stock in favor of Cosmic Holdings Corporation and Horizon Global Investments Limited.
The 1.65 billion shares will come from the resulting the valuation of shares of PAL stock in the amount of P8.24 billion of which P1.65 billion will be applied as full payment for the additional issuance in addition to the paid in capital of P6.59 billion.
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