MRC Allied, Inc. plans to acquire security solutions provider 5G Security, Inc., the holding firm said in a disclosure to the Philippine Stock Exchange on Wednesday.
The company said that its board of directors approved the designation of Augusto M. Cosio, Jr., its president and chief executive officer, “to be the authorized representative in relation with the coordination, talk, transact and negotiate for the possible acquisition of 5G Security, Inc., subject with the due diligence of the company.”
Mr. Cosio will also be authorized to sign, obtain, execute, deliver, file, and process the documentary requirements of the transaction.
5G Security offers manned security, system, cyber and risk management for its clients.
MRC Allied said that the total asset of 5G Security to date is P248.85 million.
“The acquisition will depend on the result of the due diligence that shall be conducted whether to push through or not,” it said. “The disclosure is being made to give the public the opportunity to understand the company’s position in respect of the future.”
In November 2020, MRC Allied signed a deal with 5G Security to acquire 75% of Kerberus Corp. when it entered the holding industry.
Under the agreement, 5G Security increased the authorized capital stock of Kerberus to P300 million.
In the second quarter, MRC Allied’s net loss narrowed to P3.87 million, lower by 45% than last year’s P7.04 million.
The company’s topline climbed to P1.24 million in the second quarter, almost twice the previous year’s P652,500.
On the stock market on Wednesday, shares in MRC Allied closed 2.21% higher to P0.185 apiece. — Justine Irish D. Tabile