Jollibee To Amend Articles For Preferred Shares Issuance

Jollibee Foods Corp (JFC) has disclosed to the Philippine Stock Exchange (PSE) the amendments to its articles of incorporation for the company to be able to issue preferred shares.

Photo Insert: Jollibee West End, London is its flagship store in Europe.

In amending Article Seven of its incorporation papers with the Securities and Exchange Commission, which deals with its capital base, the company added the issuance of 20 million cumulative,non-voting non-participating, and nonconvertible par value of P1 per share.

The authorized capital stock of the Corporation remains at ONE BILLION FOUR HUNDRED FIFTY MILLION PESOS (Php1,450,000,000.00) divided into: (i) One Billion Four Hundred Thirty Million (1,430,000,000) common shares with a par value of One Peso (Php1.00) per share, the disclosure said.

The preferred shares may be issued from time to time in one or more series as the Board of Directors of the Corporation may determine, and authority is hereby expressly granted to the Board of Directors to establish and designate each particular series of the preferred shares, to fix the number of shares to be included in each of such series, and to determine the dividend rate, dividend terms, amount, issue price, redemption terms, and such other terms, conditions, features, rights, privileges, and restrictions of the preferred shares for each of such series, the disclosure said.

"To the extent not set forth in this SEVENTH Article, the specific terms, conditions, features, rights, privileges, restrictions of each series of the preferred shares shall be set forth in such resolutions as may be adopted by the Board of Directors (the “Preferred Shares Enabling Resolutions”) prior to the issue of each series, which Preferred Shares Enabling Resolutions shall thereupon be deemed a part of these Articles of Incorporation; provided that such terms, conditions, features, rights, privileges, restrictions shall be effective upon the filing of a certificate thereof with the Securities and Exchange Commission," the disclosure said.

The preferred shares are redeemable at the option of the Corporation. Any and all preferred shares redeemed shall not be considered retired and may be re-issued by the Corporation.

The said amendment would allow the company to issue preferred shares which it could then use to fund its expansion plans without resorting to borrowings.

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