Listed A. Soriano Corp. (Anscor) is increasing its stake in industrialmanufacturing firm AG&P International Holdings Ltd. with a $40-million additional investment.
In a disclosure to the Philippine Stock Exchange, Anscor reported that over the weekend, it signed a definitive agreement with AG&P for the subscription of additional preferred shares in the industrial manufacturing company.
The corporate disclosure specified that the total contract price for the additional investment was $40 million and according to Anscor, the amount of the investment “was determined through negotiations between the parties.”
The additional investment made by the listed firm was funded through borrowings from a local bank. The additional shares will increase Anscor’s shareholding to an estimated 26.75 percent of AG&P’s enlarged equity base.
“The agreement is effective upon signing, but the closing of the additional investment is subject to certain conditions precedent. No material relationship exists between Anscor and AG&P and their directors and officers, or of their subsidiaries or affiliates,” Anscor added in the disclosure.
Joshua Castro, Anscor corporate information officer, said in the disclosure that the company has “pursued the investment, as it believes in the continuing success of AG&P under its new management team and third generation modularization, which is the integration of electric instrumentation, mechanical and HVAC [heating, ventilation and air-conditioning] systems that are fully tested and ready to operate upon delivery.”
AG&P is a modular fabricator of refinery and petrochemical plants, power plants and liquid natural gas facilities, mining processing and offshore platforms; and civil infrastructure such as port, bridges and water treatment and distribution facilities. The company is a pioneer in industrial process outsourcing.
Headquartered in Batangas, AG&P’s complex modules leave its fabrication yard via heavy-lift ship or container to the United States, Australia, the Arabian Gulf, Japan, Southeast Asia and Africa.
The law firm of Picazo Buyco Tan Fider and Santos acted as the legal advisor of Anscor for the investment.
Two months ago, the board of directors of Anscor approved the firm’s plan to increase its stake in AG&P from 6 percent to about 20 percent.