Century Properties assures investors new dividend shares won't dilute shareholders' equity

Listed property developer Century Properties Group Inc. on Wednesday said shareholders in the company will not have their ownership diluted after a planned authorized capital stock increase to be used as stock dividends has been implemented.

 

In a disclosure to the Philippine Stock Exchange Wednesday, the company said its board approved the application for an authorized capital increase to P9.54 billion from P5.3 billion.

 

The increase is divided into 18 million common shares at a par value of P0.53 apiece from 10 million common shares P0.53 per share.

 

Out of the intended increase, the company will take out 2 billion shares or 25 percent of the subscribed and paid-up of 8 billion shares to be applied as stock dividends.

 

Century Properties said its issuance of stock dividends is "non-dilutive."

 

"While there is an increase in authorized capital stock, the 2 billion shares will be proportionately distributed such that each shareholder will continue to own the same percentage of the company as he did before the issuance," the disclosure read. – Danessa O. Rivera/VS, GMA News