JG SUMMIT Holdings, Inc. is paying a 5 percent stock dividend to stockholders because it reclassifies its preferred non-voting shares into preferred voting shares.
In a special meeting held virtually on Tuesday, stockholders of JG Summit approved the declaration of stock dividends equal to 5% of its total issued and outstanding shares, which will be added to the declared cash dividends of 38 centavos per share for 2020.
This is equivalent to 358,142,083 common stocks and 200 million favorite voting shares, which is issued and paid for out of the unrestricted retained earnings of JG Summit as of end-2019 to all stockholders at Oct. 30, 2020.
“The planning considers that the announcement of 5 percent stock dividends as additional remuneration into the stockholders awarded the increase of the company.
This will also strengthen our funding base and ensures that the company stays tax compliant, and” Maria Celia H. Fernandez-Estavillo, JG Summit company secretary, said during the meeting.
In line with this, the stockholders also approved reclassifying the organization’s non-voting stocks, which raised its preferred voting shares to 204 billion having a par value of 1 centavo each.
The company said that the decision would reinforce its capitalization by decreasing stock issuance costs. It will also facilitate issuing proportionate stock dividends to both preferred and common voting stocks, and take care of the cash and property dividends of preferred voting shares to 1/100 of ordinary shares.JG Summit noted that the suggested amendments that are still subject to the approval of authorities aren’t anticipated to have any adverse effect on its business operations nor its capital construction.
The company posted an attributable net loss of P720.25 million in the first semester, reversing its gains of P17.4 billion final year, because of the effect of this coronavirus outbreak for its airline, petrochemical and home companies.