EEI Corp. is raising P6 billion from the issuance of preferred shares.
EEI said in a disclosure to the stock exchange Tuesday its board of directors approved the issuance of 60 million preferred shares at P100 apiece.
EEI said it would use the net proceeds from the offering to fund the real estate and power initiatives of the company and for general and working capital requirements.
The preferred shares will be cumulative, non-voting, non-participating, non-convertible and non-reissuable.
The preferred shares are perpetual unless EEI exercises its sole option on the 5th year from date of issuance.
Under the plan, EEI will issue the preferred shares via a private placement, making the deal an exempt transaction from the registration of securities with the Securities and Exchange Commission as provided under the Securities Regulation Code.
EEI reported Monday it would invest P3.85 billion to finance the expansion plans of various business units.
EEI said it would invest P1.7 billion to fund expansion of its power unit EEI Power Corp., P1 billion in EEI Ventures Inc., P600 million in EEI Construction and Marine Inc. and P550 million in EEI Ltd.
Aside from the expansion plans of key subsidiaries, EEI recently signed a memorandum of understanding (MOU) with PH Resorts Corp. for the resumption of the latter’s stalled resort and casino in Cebu.
Under the MOU, EEI would help finance, construct and compete the Emerald Bay project upon the execution of definitive agreement.
EEI registered a net income of P62.7 million in the first nine months of 2024, a turnaround from the P292-million net loss in the same period last year.
