FPHC will initially issue 30 million preferred shares but could increase the size of the offer to an additional 20 million preferred shares depending on the reception of the market. The shares will be sold to sophisticated investors and institutions from March 26 to April 1 this year at R100 apiece.

Following the offer, FPHC will have 588.91 million common shares, 20 million Series A preferred shares, and 30 million Series B perpetual preferred shares issued and outstanding. "The holders of the perpetual preferred shares do not have, or will not have, identical rights and privileges with holders of the existing common shares of the company," it added.

FPHC eyes to raise as much as P3 billion from the sale of the preferred shares. Proceeds, it said, will be used to repay or refinance debts and fund acquisitions in power and infrastructure.

According to the Lopez-controlled company, around P1.5 billion of the proceeds would be used to repay or refinance $ 52-million worth of floating rate notes, $ 35 million in obligations to the Asian Infrastructure Mezzanine Capital Fund, and a $ 17.9-million obligation to Standard Bank Asia Ltd.

It said it would repay debts as they fell due, and/or accelerate payment through debt buybacks if it could negotiate a mutually acceptable price with any selling bondholder.

FPHC added part of the proceeds, or around P1 billion will be used to acquire strategic control of Manila Electric Co. (Meralco) and to infuse fresh capital into subsidiaries such as First Philippine Infrastructure Inc., First Philippine Infrastructure Development Corp., and Manila North Tollways Corp. (MNTC)