ABACORE Capital Holdings, Inc. (ABA) said it has entered ino partnerships with two companies to establish food handling and terminal facilities, in addition to other investments it plans to make.
In a disclosure to the stock exchange Friday, the listed company said its board has authorized its chairman and/or president to acquire 33% of a proposed joint venture company valued at P2.3 billion with the Tiu-Laurel family’s Frabelle Group. The purchase will be done through a share swap.
The JV will establish food terminal facilities.
ABA’s board also cleared its purchase of 30% of a JV with Subic Grains for the establishment of a logistics or food handling company.
The company will also invest P112.5 million through its wholly-owned unit Omnilines Energy International Network to acquire a 12% stake in a cement company.
ABA said these investments will not only translate to capital gains, but also generate long-term recurring income.
The company will also be issuing 1.8 billion shares with a par value of P1 each. This constitutes the remaining unsubscribed shares of the company’s authorized capital stock worth P5 billion.
“This is just an authority by the Board to issue the shares. Details on the subscriber and terms and conditions are not yet available,” the company said.
AbaCore earlier said it will increase its authorized capital stock to P6.5 billion to prepare one of its affiliates embark on a P155-billion energy project in Batangas with three Chinese state-owned companies: China Gezhouba Group Co. Ltd. (CGGC), China Petroleum Pipeline Engineering Co. Ltd. (CPP) and the China Harbour Engineering Corp. (CHEC).
The company’s board also authorized the chairman and/president to sign contracts and execute documents for the sale of properties of its subsidiaries that are expected to generate about P360 million in gains. These subsidiaries include Omnilines Energy International Network, Inc., Omnicor Industrial Estate & Realty Center, Inc., and Haves Insurance Management & Liability Agency, Inc.
ABA’s net loss attributable to the parent narrowed to P3.06 million in the first quarter of 2019, against the loss of P7.42 million a year earlier, as gross revenue surged 118% to P14.44 million.
ABA rose one centavo or 0.97% to close at P1.04 on Friday. — Arra B. Francia