Benguet Corporation (BC), a publicly-listed mining corporation controlled by the Romualdez family, announced its first cash dividend declaration in 35 years as it is finally debt-free.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said it had declared cash dividend on its common stock at P0.20 per share and P0.28 for its convertible preferred stock, payable starting Dec. 10, 2024, with a record date of Nov. 14, 2024.
It is the first time after 35 years that BC will be paying dividends to its stockholders and the first management action after BC became "debt free" following the resolution of all its outstanding debts.
The signing of the Mutual Rescission Agreement about its restructured loans upon the approval of the Board of Directors marked the end of a three-decade-long debt and mortgage indenture.
The deal was structured with its remaining creditors, Wilshire Business Consulting Corp. and Armstrong Capital Holdings Corp., which opted for direct settlement and leveraging their respective debts for investment.
Benguet President Lina Fernandez said, "the termination of the 1993 Debt Restructuring Agreement and Mortgage Trust Indenture is the culmination of management's long and hard struggle to free the Company from its outstanding debt liabilities that have for more than 30 years subjected it to hardship and constraint of operation."
This year's development on the debt issue has finally relieved the company from the negative restrictions of the restructured loans that have limited its ability to grow in the past and to deliver on its promise to bring value to shareholders.
“Now with improved creditworthiness and clean balance sheet, BC can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the Company and will hopefully lead to future dividend payouts,” the firm said.
It added that “as BC embarks on a new chapter, it will continue to deepen its foothold in the mining sector as well as build up its portfolio in new business ventures like agriculture, real estate, bulk water and renewable energy.”