Securities and Exchange Commission Sec Form 11-C Current Report Under Section 11 of the Revised Securities Act (RSA) And Rsa Rule 11(a)-1(b)(3) Thereunder

August 10, 1999 PSE CIRCULAR FOR BROKERS NO. 1981-99 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. 9 August 1999 Date of Report (Date of earliest event reported) 2. SEC Identification Number 8202 3. BIR Tax Identification No. 360-000-288-923 4. Reynolds Philippine Corporation Exact name of registrant as specified in its charter 5. Dasmarias, Cavite Province, country or other jurisdiction of incorporation 6. (SEC Use Only) Industry Classification Code 7. Dasmarias, Cavite ______________ Address of principal office Postal Code 8. 838-2088/838-6862 Registrant's telephone number, including area code 9. ____________________________________________ Former name or former address, if change since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding One Billion (1,000,000,000) 11. Indicate the item numbers reported herein: Items No. 9 ITEM NO. 9 Reynolds Philippines Corporation (Reynolds) has agreed to sell all of its holdings in New Saga Power Corporation (NSPC). The buyer is a Hongkong-based company which plans to invest, operate and participate in Philippine power plant projects. The following article shall be distributed to the press for release on national newspapers on 10 August 1999: REYNOLDS CONTRACTS SALE OF SUBSIDIARY Reynolds Philippines Corporation (Reynolds) has agreed to sell all of its holdings in New Saga Power Corporation (NSPC). The buyer is a Hongkong-based company which plans to invest, operate and participate in Philippine power plant projects. NSPC is a wholly-owned subsidiary of Reynolds engaged in power generation projects. The contract to sell will be implemented within a 90-day period. LLjur Reynolds expects to book financial gains of as much as P300 million from this asset disposal. With the substantial income from the NSPC sale, Reynolds will gain back its provision for the decline in value of its NSPC investment in 1998. In 1998, Reynolds provided for the write-off of its goodwill on its NSPC investment. This was the result of NSPC's divestment last year of a 39.5% interest in Batangas Power Corporation. This NSPC provisioning, allowances for bad debts and adjustments for declines in asset values caused the company heavy losses in 1998. Reynolds will use the net proceeds from the NSPC sale to further reduce debts and save on interest costs. It is currently pursuing the aggressive collection of its receivables to recover the P250 million provisioning in 1998 for doubtful accounts. SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. REYNOLDS PHILIPPINE CORPORATION Registrant By: (SGD.) MA. OLIVIA T. YABUT-MISA Corporate Information Officer