LISTED company Phinma Corp. has sold its stake in a solar energy unit for around P218.35 million to a subsidiary as it rationalizes the ownership structure of its construction materials business.
In a regulatory filing on Tuesday, it said its steel products subsidiary Union Galvasteel Corp. (UGC) bought nearly 25 million of the shares of Phinma Solar Energy Corp. at P8.83 apiece. The shares were paid in full on Monday.
Phinma Corp. owns more than 97.84% of UGC.
“The purchase price is equivalent to Phinma’s cost of investment in Phinma Solar,” Phinma Corp. said.
The sale will consolidate UGC’s full ownership of Phinma Solar, which is jointly owned by Phinma Corp. and the steel products unit.
“Phinma Solar can add value in terms of product positioning and merging technology to complement the products and services offered by UGC,” Phinma Corp. said.
In a separate disclosure on Tuesday, Phinma Corp. said that its board of directors approved the subscription of 24.73 million shares in UGC.
“The additional investment will increase UGC’s equity in support of its investment in Phinma Solar,” the firm said.
Phinma Corp. is a holding company with interests in the education, steel products, housing, and business process outsourcing sectors. Its subsidiaries include UGC, Phinma Education Holdings, Inc., and Pamantasan ng Araullo, Inc.
Its shares on Tuesday improved 0.92% to finish at P9.89 apiece. — Angelica Y. Yang