ABACORE Capital Holdings, Inc. is hiking its capital stock to prepare for an affiliate’s development of a P155-billion energy project in Batangas with Chinese firms.
In a disclosure to the stock exchange on Thursday, AbaCore said its board of directors has approved the increase in authorized capital stock to P6.5 billion from the current P5 billion. The new shares will be issued to AbaCore’s affiliate, Simlong Energy Development Corp., which will then become a wholly owned subsidiary of the company.
Abacore sees Simlong Energy generating recurring income through its energy center that will include a naphtha refinery, liquefied natural gas terminal, and a 1,560-megawatt power plant on a 102-hectare property in Batangas City.
Simlong Energy is undertaking the project with three Chinese state-owned companies, namely China Gezhouba Group Co. Ltd. (CGGC), China Petroleum Pipeline Engineering Co. Ltd. (CPP) and the China Harbour Engineering Corp. (CHEC).
The project is one of the investment deals signed following President Rodrigo R. Duterte’s visit to Beijing last April.
Simlong Energy expects to complete the project before the end of Mr. Duterte’s term in 2022.
The increase in capital stock will be subjected to stockholders’ approval and ratification during the company’s annual meeting on July 11. AbaCore will also ask stockholders to waive their preemptive rights so it can fully issue the shares to Simlong Energy.
At the same time, AbaCore also approved its affiliate Montemayor Aggregates & Mining Corp. (MAMCOR)’s formation of a joint venture with Carino Development Corp. at a 40-60 stake, respectively.
Under the partnership, MAMCOR will contribute 50,000 square meters of land priced at P5,000 per sq.m in Pagkilatan, Batangas. This will be developed into a project composed of vertical and horizontal developments as well as a membership club.
Incorporated in 1981 formerly as Piedra Negra Mining Corp., AbaCore changed its purpose to that of a holding firm in 1989. It has interests in financial services, real estate, gold mining, and coal mining.
AbaCore trimmed its net loss attributable to the parent to P3.06 million in the first quarter of 2019, against the P7.42 million it posted in the same period a year ago, as gross revenues soared 118% to P14.44 million.
Shares in AbaCore jumped 5.17% or three centavos to close at 61 centavos each at the stock exchange on Thursday. — Arra B. Francia