A BROWN Co., Inc. said its board had approved the reduction in the capitalization of its joint venture company with GET Philippines, Inc., the listed holding firm said.

In a regulatory filing on Tuesday, A Brown said the joint venture will now have an authorized capital stock of P30 million instead of the previously disclosed P100 million.

Earlier this year, the company forged an agreement with GET Philippines, an operator of zero-emission buses, to form a new company that will own and operate Community Optimized Managed Electric Transport (COMET) electric vehicles in Cagayan de Oro.

Upon the incorporation of the joint venture company, it will have a share of P10 million, significantly lower than the previous planned subscription of P45 million.

In the previous agreement, A Brown said that upon the new company’s incorporation, its outstanding capital stock would be P45 million corresponding to 45 million shares. GET Philippines will own 100% of the outstanding capital stock.

“The reduction in the capitalization of the [joint venture company] at incorporation has been agreed upon by (A Brown] and GET to reduce the filing fees and the documentary stamp taxes,” it said.

The two parties, A Brown said, will both have an equal share of 50% upon its incorporation, adding that GET Philippines will now have the option to make equity contributions through COMET electric vehicles.

The joint venture will be responsible for the provision, management, service, maintenance, and operation of the COMET fleet for the electric shuttle service in Cagayan de Oro.

A Brown is primarily engaged in real estate development. Its subsidiaries are in power generation, manufacturing, and trading of palm oil and other palm products.

At the local bourse on Tuesday, shares in the company shed one centavo or 1.52% to end at P0.65 apiece. — Ashley Erika O. Jose