December 27, 2024 | 12:00am
MANILA, Philippines — Romualdez-led Benguet Corp. is now keen on engaging possible investors to explore new and expansion projects to diversify revenue sources after becoming debt free.
In a regulatory filing, . declared cash dividend on its common stock of P0.20 per share and P0.28 for convertible preferred stock for the first time in more than three decades.
The declaration of cash dividends came after the mining firm became debt free following the resolution of all of its outstanding debts after 35 years.
“The termination of the 1993 debt restructuring agreement and mortgage trust indenture is the culmination of management’s long and hard struggle to free the company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation,” Benguet Corp. president Lina Fernandez said.
The company said it would now resume capital market activities and engage investors in new projects and expansion of existing operations to create new revenue streams that would “hopefully” lead to future dividend payouts.
“As (Benguet Corp.) embarks on a new chapter, it will continue to deepen its foothold in the mining sector as well as build up its portfolio in new business ventures like agriculture, real estate, bulk water and renewable energy,” the firm said.
In October, the mining firm executed a mutual rescission agreement with its remaining creditors to terminate the debt restructuring agreement covering its P1.4-billion loan that was initiated in 1993.
The firm said it has settled a “substantial” portion of the loans over the years. The company added that the remaining creditors have opted to transact directly with the company including leveraging the debts for investment purposes.
During the same month, the board of directors of Benguet Corp. approved the proposal of Red Earth for a private placement in the mining firm that would infuse P440 million in the company to bankroll its existing projects that include mining and agriculture.
The private placement involves an aggregate shares of 110 million with 90 million of which coming from the firm’s unissued shares while the remaining 20 million would come from the increase of capital stocks of Benguet Corp.
The company explained that the additional capital infusion will be used for the development of its various projects such as the Pantingan gold project, Bolco gold project, solar project and agribusiness project.
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