By Arra B. Francia, Senior Reporter
A UNIT of AbaCore Capital Holdings, Inc. is selling its Batangas property to cement manufacturer Premiere-Slag International, Inc. for P225.88 million.
In a disclosure to the stock exchange on Wednesday, the listed company said its wholly owned unit Omnilines Energy International Network, Inc. has signed a contract with Premiere-Slag for the sale of its 30,117-square meter land in Mabini, Batangas.
In addition, AbaCore will subscribe to 10% of Premiere-Slag’s proposed authorized capital stock of P1.02 billion for P102 million.
“The intention is for Abacore to be the direct owner of Premiere-Slag International, Inc., an operating company, with business operations in the production, processing, and selling of cement or cement mixed with other components,” the company said.
AbaCore said this transaction will provide the company with other sources of recurring revenue.
Premiere-Slag is a company based in Subic Bay Freeport Zone that supplies cement products to the brand Sun Portland Cement.
AbaCore will subscribe to Premiere-Slag’s shares once the latter gives the full payment from its acquisition of Omnilines Energy’s property.
The transaction will still be subjected to several closing conditions within 100 days from the signing of the agreement, including Omnilines Energy assisting Premiere-Slag with the acquisition of licenses required for the development project. Premiere-Slag will shoulder the expenses for this process.
Omnilines Energy should also assist Premiere-Slag in obtaining ownership or the right to rent the seaside land connected to the property at a reasonable price. This will allow Premiere-Slag to install a pipeline that can transport raw materials from a dock to the property.
The AbaCore unit must also help Premiere-Slag secure permission from the Province of Batangas for the construction of a dock that will aid in its business activities.
Incorporated in 1981 originally as a mining company, AbaCore now functions as a holding firm with controlling interests in financial services, real estate, gold mining, and coal mining.
AbaCore’s net income attributable to the parent dropped 23% to P264.29 million in the first half of 2019, after gross revenues slumped 135 to P342.91 million.
Shares in AbaCore jumped 4.49% or four centavos to close at 93 centavos each at the stock exchange on Wednesday.