The Philippines Securities and Exchange Commission (SEC) has allowed the local units of French conglomerate Lafarge group to increase their capital stock as payment for liabilities against their parent companies. In two resolutions, the SEC allowed Lafarge Cement Philippines, Inc. and Lafarge Holdings (Philippines), Inc. to increase their authorized capital stock by P13.292 billion and P13.901 billion respectively. Meanwhile, subscribed and paid-up capital for Lafarge Cement and Lafarge Holdings were also increased by P5.424 billion and P4.267 billion respectively. "All the requirements of the Corporation Code governing the increase of capital stock... have been complied with," the SEC said. "Based on the foregoing, the increase of capital stock"... may be considered in order," it added.
In a meeting last Aug. 30, Lafarge Cement approved the increase in its capital stock as payment of existing liability to its parent Financier Lafarge SA. The liability, amounting to P13.560 billion, covers subscriptions of Financier Lafarge for some 54.24 million shares, the SEC said. "To effect the conversion of the referenced liabilities, the assignor/creditor/subscriber Financiere Lafarge SA executed the deed of assignment in favor of the company Lafarge Cement Philippines, Inc.," the corporate regulator said. Publicly listed Republic Cement Corp., the parent of Fortune Cement Corp. and Iligan Cement Corp., is part of the Lafarge Group in the Philippines.