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ABACUS Consolidated Resources and Holdings, Inc. (ABA) disclosed to
the Philippine Stock Exchange that it would transfer all outstanding
capital stock of its non-operational subsidiary to its parent firm,
Blue Stock Development Farms, Inc. so it can concentrate on its core
business and clean its books of the subsidiary’s deficit.
ABA said the board approved the assignment of 50
million shares at P1.00 each of Hedge Issues Management and Leverage
Advisors, Inc. to Blue Stock, which owns 41.82 percent of ABA at
end-May. At end-December, Hedge Issues has accumulated a capital
deficit of P4.24 million.
ABA said that since the subsidiary has a capital
deficiency, its book value is negative, therefore, the price is
“reasonable.”
“The assignment will enable Abacus to focus on
its current lines of business. The transaction will, furthermore, be
advantageous to Abacus in that the deficits of Hedge Issues will no
longer be carried over in the consolidated balance sheets of
Abacus,” ABA told the local bourse.
The bulk of Hedge Issues’ business is in
trading the shares of the former Suricon Resources Corp., which is
already inactive. Last year, Hedge Issues also incurred P73.82
million in losses.
“The company, in order to arrest its current
position, plans to venture into real estate which involves corporate
planning, funding and operating profitability,” Hedge Issues said
in its latest financial statement.
In April, ABA announced that it will transfer
its coal operating contract, mining rights and properties to Abacus
Coal Exploration and Development (ACED) in exchange for and in
payment for new shares to be issued by ACED.
The company said the transfer will complete the
spin-off of coal mining and allow the holding firm to focus on its
core competency and facilitate the entry of investors who are
looking into the development of coal properties.
The ABA board also approved the sale of 586.5
million treasury shares at P0.01 per share through the local bourse
upon reaching the desired price for the sale.
-- Likha C. Cuevas-Miel
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