LISTED holding firm Apollo Global Capital, Inc. has acquired a 49% stake in Poet Blue Ocean Offshore Services Pte. Ltd. (PBO), a Singaporean engineering firm that owns an offshore mining vessel.

The firm said in a stock exchange disclosure on Tuesday that its board of directors approved the execution of an instrument of transfer of shares that covers Apollo Global’s acquisition of the PBO stake.

Apollo Global said PBO is a special purpose vehicle that was registered in Singapore on April 21, 2017 to own the deep-sea siphon mining vessel, MB Siphon 1, which is its only asset.

“The transaction is consistent with the use of proceeds in Apollo Global’s recently completed follow-on offering, where the company committed to use the net proceeds from the offer primarily to buy a 49% stake in PBO, the owner of MB Siphon I vessel, which will be used for the offshore mining activities of Apollo Global subsidiary, JDVC Resources Corp.,” it said.

According to Apollo Global, the transaction amounted to P711.98 million, which consisted of 490,000 shares at a price of P1,453.022 per share.

“The amount of consideration is based on the valuation of the MB Siphon I Vessel by Cuervo Appraisers, Inc. The total consideration for the purchase of 49% of the PBO constitutes 49% of the appraised value of the MB siphon vessel of P1,453,022,000,” the company said.

Apollo Global expects to have two sources of revenues after the acquisition, which comprise of 90.47% royalties from JDVC and 49% of the charter fees to be earned by PBO.

“The two sources of revenues of Apollo Global and JDVC are expected to be sufficient in satisfying the cash requirements of the group and no further fund-raising is expected in the coming year,” it said.

Based on previous disclosures, Apollo Global said PBO is a Singaporean firm that is engaged in engineering design and consultancy services supporting mining, oil, and gas extraction, and offshore exploration activities.

Apollo Global recently concluded its follow-on offering, which raised P988 million from the sale of P12.35 billion shares at eight centavos apiece.

Based on its prospectus dated Aug. 13, Apollo Global said the offshore mining project is located off the town of Gonzaga, Cagayan. It will involve the extraction of magnetite ore sand and is the Philippines’ first large-scale offshore mining project.

Apollo Global said MB Siphon I is estimated to begin operations on or before April 30, 2022 if the weather allows and after all necessary offshore mining protection gears and environmental protection equipment are procured. — Revin Mikhael D. Ochave