MANILA - Diversified conglomerate San Miguel Corp. (SMC) has extended by a month the offer period wherein its shareholders can convert their common shares into preferred shares.

In a disclosure to the Philippine Stock Exchange on Tuesday, SMC said the conversion period has been extended to September 21. The deadline was originally on August 20.

"The extension will allow more shareholders to participate in the exchange offer," SMC said.

The offering involves up to 1.1 billion common shares, or around 35% of SMC's outstanding shares. Shareholders can swap one share for one preferred share.

Unlike common stocks, preferred shares have a higher claim on a company's assets and earnings. However, these shares do not have voting rights.

The preferred shares, priced at P75 apiece or a 22% premium over its common shares, can accumulate dividends and will be listed in the local bourse. These shares have a dividend rate of 8% per annum.

The share swap offer was intended to address concerns about the SMC's diversification into capital intensive businesses such as oil, power distribution, and telecommunications. Company financial advisors said the offer is SMC's proactive approach to engage with shareholders in light of the economic crisis and the company's investments in Manila Electric Co. (Meralco) and Petron Corp.

SMC bought a 27% stake in Meralco last year, and has an option to buy a majority interest in Petron.