• Aboitiz Equity to raise P2.8B via treasury shares issue

    0

    Aboitiz Equity Ventures Inc. (AEV) is set to sell 50 million treasury shares to raise P2.8 billion, according to the company’s disclosure documents. The estimated amount is based on the firm’s last stock price of P56 apiece.

    “Proceeds of the sale will be used to build up the company’s cash reserves, working capital, and for other general corporate purposes,” AEV said.

    It added that the treasury shares could be sold either in a single block or in tranches, depending on the prevailing market prices on the bourse.

    AEV’s consolidated net income for the first semester dropped 20 percent to P9.5 billion from the previous semester’s P11.9 billion. In the second quarter alone, AEV’s net income was down 9 percent to P4.6 billion.

    Incorporated in 1989, AEV is the holding company of the Aboitiz Group of Companies. It has business interests in power distribution, power generation, and retail electricity supply (Aboitiz Power); financial services and portfolio investments (Union Bank); food manufacturing (Pilmico Foods); and real estate (Aboitiz Land).

    Meanwhile, AEV’s power unit Aboitiz Power, recorded a 7 percent net income decline for the first semester to P6.8 billion from last year’s P7.3 billion. The decrease was mainly due to costs of ongoing projects, as well as the “implementation of the Geothermal Resources Sales Contract for the Tiwi-Makban plants, and weaker ancillary performance of the Magat plant.”

    AEV’s power unit Aboitiz Power Corp. has ongoing works for the 14-megawatt (MW) Sabangan run-of-river hydro plant and the 300-MW Davao coal plant.

    Aboitiz Power expects to begin construction of its 400-MW Pagbilao expansion, 300-MW Cebu Coal, and 68-MW Manolo Fortich projects within the next few months.

    Share.
    loading...
    Loading...

    Please follow our commenting guidelines.

    Comments are closed.