The board-approved plan covers cover 266.7 million Series 2-J (SMC2J) and 183.9 million Series 2-K (SMC2K). These may be swapped for new Series 2-P, 2-Q, or 2-R preferred shares reissued from treasury, the conglomerate said in a stock exchange filing on Friday.
The shares are valued at around P32 billion, based on current prices.
The company will file the necessary exempt transaction and tender offer documents with the Securities and Exchange Commission and list the reissued shares on the Philippine Stock Exchange.
The move allows SMC to manage its upcoming redemption obligations without a large cash outlay. By allowing holders to convert into new preferred shares, the company preserves liquidity while giving investors the flexibility to stay invested or exit.
The board also approved the full redemption of Series 2-J and Series 2-K shares on Oct. 29 and Dec. 10, respectively, for shareholders who choose not to participate in the exchange.
—Edited by Miguel R. Camus
