Filipino stockholders of Meralco as of March 23 will receive 2.818 shares of Rockwell Land Corporation for every Meralco share held. Foreign shareholders will receive the cash equivalent.
The electric utility’s board of directors in February 2012 declared its 51% equity in Rockwell Land as property dividend. This required Rockwell Land Corporation to apply for listing with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange by way of introduction. Rockwell Land proposed to list all its 6.23 billion common shares on the PSE. The company has an authorized capital stock of P9 billion consisting of 8.89 billion common shares with a par value of P1 and 11 billion preferred shares with a par value of P0.01 each.
“We look forward to the listing of Rockwell Land. We have built one of the strongest brands in the property development sector, and are happy to give the public an opportunity to share in the Rockwell growth story,” said Rockwell Land president Tong Padilla.
Meralco, meanwhile, is seeking SEC approval to distribute the property dividends to Meralco shareholders. It plans to distribute 3.18 billion common shares of Rockwell Land as property dividends, or in the case of foreign Meralco shareholders, the cash equivalent.
The property dividend is expected to be paid out to Meralco shareholders within five trading days after securing all approvals from the SEC and the PSE. Target listing date is on or before May 14.
With the approval of the property dividends, Rockwell Land will be a subsidiary of First Philippine Holdings Corporation.