Top Frontier Holdings Inc. led by bilyonaryo Iñigo Zobel is paring down its debts using fresh cash raised from perpetual securities bought by ultra bilyonaryo Ramon S. Ang.
Ang’s Far East Holdings Inc. (FEHI) acquired all of the P51 billion redeemable non-voting perpetual securities (“RPS”) issued by Top Frontier on December 20 and 21.
“The issuance by the company of the 2022 RPS is for debt-liability management. (The P51 billion RPS) is the total amount of the funding requirements needed by the Company to execute and implement its debt-liability management such as payment of obligations and redemption of preferred shares,” said TFHI.
TFHI clarified it did not issue any shares to FEHI – Ang’s investment arm for real property, construction, operation and management of hotels – because the perps were issued solely in terms of their peso face value.
“The issuance of the RPS has no effect on the ownership structure and capital stock structure of the company before and after the transactions,” said TFHI.
This means Zobel will continue to own 60 percent of the holding firm while Ang’s stake remains at .02 percent.
Ang used part of the P97 billion cash he raised from the sale of his stake Eagle Cement to San Miguel Corp., which is 62 percent-owned by TFHI.
TFHI said Ang, TFHI’s president and CEO, and his son, John Paul, a company director, inhibited themselves from the board discussion and voting on the perps sale to FEHI.
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