To allow share placement
Listed Anglo Philippine Holdings Corp. (APO) is doubling its authorized capital stock to P4 billion to pave the way for a planned private share placement with an investment holding firm owned by APO Chairman Alfredo Ramos.
Under the private placement, APO will issue 2.3 billion shares to Alakor Corp., an investment and holding firm controlled by Ramos, the company said in a disclosure to the exchange.
APO is expanding its authorized capital stock to P4 billion at a par value of P1 per share, from P2 billion at present. The board of APO approved the increase in capital stock in a recent board meeting.
The shares will be offered at a price of P1.85 per share, which is based on the 60-day volume-weighted average price of APO shares reckoned from July 30, 2013 to December 26, 2013.
Subject to due diligence and final investment decision, proceeds from the private placement are intended to be used by the company to either settle outstanding loan obligations; acquire dividend-yielding securities, or finance its future property development projects.
Ramos, who is also a member of the APO board, did not participate in the voting for the aforementioned transactions, according to the company.
“[The board] authorizes APO to undertake a private placement of up to 2.3 billion shares in favor of Alakor Corp. and its designated affiliates, to be taken from the increase in capital stock and partly from existing unissued shares,” the company told the local bourse.
Incorporated as an oil and mineral exploration company, APO eventually amended its primary purpose to become an investment holding firm focused on natural resources, property development and infrastructure activities.
The company also maintains minor investments in diversified pioneer projects with attractive economic returns, an SEC document showed.
On December 18, 2012, the company acquired 100 percent ownership of Vulcan Materials Corp. (VMC), a company involved in the exploration and development of mineral and aggregates resources.
APO has investments in United Paragon Mining Corp., Atlas Consolidated Mining & Development Corp., The Philodrill Corp., North Triangle Depot Commercial Corp., MRT Development Corp.; MRT Holdings Inc.; Brightnote Asset Corp. and Filipinas Energy Corp.