Vantage to invest P250M in Monte Oro Energy
Listed investment holding firm Vantage Equities Inc. has approved a plan to invest up to P250 million in Monte Oro Energy Resources & Energy Inc. (MORE), a company focused on mining, oil and gas and infrastructure investments.
More owns Monte Oro Grid Resources Corp., which owns 30 percent of the National Grid Corp. of the Philippines (NGCP), the consortium that won the right to operate the nationwide power grid with a $3.95 billion bid.
“The board approved a proposal for Vantage Equities to subscribe to as much as P250 million worth of shares of MORE. We don’t know yet whether it would be accommodated,” said Vantage Equities corporate secretary A. Bayani K. Tan.
Tan said should the company invest the entire amount of P250 million, the investment would represent 10 percent of MORE.
He said Vantage’s decision to invest in MORE is in line with the group’s efforts to further boost profitability and enhance shareholder value. “We think MORE is a good investment.”
NGCP is 60 percent owned by Filipinos comprising MORE and businessman-stockbroker Robert Coyiuto’s Calaca High Power Corp. and 40 percent by State Grid Corp. of China, the largest electricity provider in China and ranked 29th in the Fortune Global 500 list of the world’s largest companies by revenue in 2007.
The expansion and upgrade of the grid will entail an investment of around $725 million until 2010.
Aside from the NGCP, MORE also operates Service Contract 52 in the
Vantage divested its shareholdings in International Exchange Bank in June 2006 with the proceeds from the sale used to invest in government securities and boost marketable equity portfolio.
The company has existing investments in e-Business Services Inc., eBiz Financial Services Inc., iCurrencies Inc. and Philequity Management Inc. It also controls Internet portal and marketing firm Yehey! Corp.
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