EEI Corp., the construction arm of the Yuchengco Group of Companies, said Friday it obtained shareholders’ approval to issue up to P6-billion worth of preferred shares.
EEI said in a disclosure to the stock exchange 72 percent of shareholders approved, through written consent, the board’s decision to offer P4 billion worth of preferred shares, with an oversubscription option for another P2-billion preferred shares.
“With the advent of new mega-infrastructure projects being projected to be issued by the government, the corporation seeks to raise additional capital in order to position itself to take advantage of this opportunity,” EEI said.
EEI said the offering of the preferred shares would enable it to improve contracting capacity, strengthen equity base and mitigate any lengthened cash conversion cycle on projects.
The company secured P60 billion worth of construction projects both here and abroad.
Al Rushaid Construction Co. Ltd., a joint venture between EEI and Al Rushaid Petroleum Investment Corp. in Saudi Arabia, secured contracts amounting to P17.38 billion in 2020.
Meanwhile, EEI’s local projects covering building, infrastructure and electromechanical projects have a remaining contract value of around P43 billion.
EEI said construction operations resumed at major infrastructure projects, including the Malolos Clark Railway Package 4 being undertaken through a joint venture with Spanish firm Acciona Construction Philippines Inc. and in Package 5 which was awarded to Korea’s POSCO Engineering and Construction Co. Ltd., Metro Manila Subway Phase 1 and Metro Manila Skyway Sucat-Alabang viaduct expansion.
The company is also completing works on high-rise projects. It continues to bid for bigger projects in the domestic and overseas markets.