Asiabest Group board approves P3-B capital increase, follow-on offering – BusinessWorld Online
LISTED holding company Asiabest Group International, Inc. (ABG) said its board approved a P3-billion increase in authorized capital stock and a major follow-on offering.
In a stock exchange disclosure on Wednesday, ABG said the amendment to its Articles of Incorporation — increasing authorized capital stock from P600 million to P3 billion — is subject to stockholders’ approval.
The board also approved a follow-on offering of 300 million to 620 million primary common shares, subject to stockholders’ and Securities and Exchange Commission approval of the capital increase. At the same time, ABG approved a private placement of up to 300 million common shares from its existing authorized but unissued shares, payable in cash and to be issued in one or more tranches.
The proceeds would be used to acquire Concrete Stone Corp. (CSC), Industry Movers Corp. (IMC), and/or Kabalayan Housing Corp., as well as certain real properties or other assets.
In exchange for the assets, Industry Holdings and Development Corp. (IHDC) and Premium Lands Corp. (PLC) will subscribe to up to 600 million new common shares at an issue price of P25 per share, for an aggregate consideration of up to P15 billion.
As part of its plan to make CSC a subsidiary, ABG will subscribe to 10 million primary common shares of CSC at a discounted price of P15 per share, for a total of P150 million, subject to regulatory approvals and definitive documentation.
ABG shares closed Wednesday at P26.80, down 0.56% or 15 centavos. — Beatriz Marie D. Cruz
