INVESTOR FREQUENTLY ASKED QUESTIONS
Procedure for conversion of GDRs to Lopez Holdings common shares
A GDR holder opting to avail of his SPUR exercise right shall pay an exercise price of P4.55 per SPUR (GDR), which shall entitle him to 20 Lopez Holdings common shares. This is stipulated on page 10 of the prospectus on the Lopez Holdings (Benpres) Offering of its Global Depository Receipts dated 28 October 1994.
1. Payment of the exercise price of P4.55 per GDR:
The GDR holder must contact their broker to obtain settlement instructions stating:
• The amount (U.S. Dollar equivalent of the exercise price) to be remitted to the broker;
• The mode of remittance (usually via their accredited bank in the Philippines)
Upon receipt by the broker of the remittance from the GDR holder of the exercise price, the broker should pay Metrobank-Trust Banking Group the exercise price via:
• Manager’s Check payable to Metrobank-Trust Banking Group or
• Through its accredited bank by using the Philippine Domestic Dealing Transfer System (PDDTS), a local bank to bank transfer of funds, provided the broker’s bank is also a member of the PDDTS.
2. The GDR holder will inform the Bank of New York (BNY) via the Form of Exercise Notice that he is converting his GDRs into Benpres shares so that BNY could give Metrobank-Trust Banking Group the Delivery Instruction to release the corresponding shares to the designated broker.
3. The time frame for conversion is dependent upon receipt by Metrobank-Trust Banking Group of the exercise price from the GDR holder who usually remits the same through broker. Upon receipt of payment of the exercise price, Metrobank-Trust Banking Group shall then release to the designated broker or custodian the duly endorsed Lopez Holdings (Benpres) stock certificates within the following timeframe:
• After three (3) working days if payment is via check.
• The next working day if payment is made in cash via the PDDTS.
Said timeframe is reckoned from the date when Metrobank-Trust Banking Group receives payment of the exercise price and not from the date the conversion request from BNY is received.
Metrobank-Trust Banking Group is the trustee for the underlying 306 million common shares of Lopez Holdings Corporation for the GDRs issued in 1994. Metrobank-Trust Banking Group has offices at the 18th Floor, GT Tower International, 6813 Ayala Avenue corner H.V. dela Costa Street, Makati City with fax number +632 858 8016.