PAL Holdings board approves capital stock increase to P23B

PAL Holdings Inc., operator of flag carrier Philippine Airlines, has increased its authorized capital stock by P3 billion.   In a disclosure to the Philippine Stock Exchange on Wednesday, PAL Holdings said the increase was approved during a board of directors meeting on Tuesday.   The company’s capital stock would now be P23 billion divided or 23 billion common shares with a par value of P1 per share from P20 billion or 20 billion common shares with a par value of P1.   The board amended PAL Holdings’ articles of incorporation to reflect the increase in the authorized capital stock.   Also approved by the board was the subscription by Trustmark Holdings Corp.–headed by tycoon Lucio Tan–of 17 billion common shares of the corporation at P1 per share. A portion of the subscription price would be issued out of the current unissued capital stock of the corporation and the balance from the increase in the authorized capital stock.   The board also approved Trust Mark’s subscription to 85 billion of Philippine Airlines Inc. shares at P0.20 per share or P17 billion out of the increase in the authorized capital stock of PAL Holdings.   The exchange halted trading of PAL shares for an hour during the morning session on Wednesday to give the investing public time to digest the material information disclosed by the corporation. —VS, GMA News