SEC approves Monte Oro capital hike
The Securities and Exchange Commission has approved the increase in capitalization of Monte Oro Resources & Energy Inc. (MORE) to P5 billion from only P1 billion to raise funds for additional working capital requirements.
Documents filed with the SEC show that out of the P4-billion capital hike, P1 billion has been subscribed and P449.4 million paid for by Sureste Properties Inc., a company controlled by International Container Terminal Services Inc. (ICTSI) chairman Enrique Razon Jr.
The new capitalization consists of five billion shares with a par value of P1.
MORE is chaired by businessman Walter Brown, who owns listed holding firm A.Brown Co. Inc., and heads Philex Mining. Other shareholders include Wealth Securities of former, Philippine Stock Exchange (PSE) chairman Wilson Sy ( with a 10.86 percent interest), A. Brown (6.24 percent), Campos Lanuza (5.1 percent), Lakeland Village and Evergrow Industries.
MORE controls Monte Oro Grid Resources Corp., which owns 30 percent of National Grid Corp. of the Philippines (NGCP), the consortium that won the 25-year concession to run the power grid of National Transmission Corp. (TransCo).
NGCP is now a step closer to securing a Congressional franchise after its application to operate the TransCo concession has been approved by the Lower House.
The consortium, composed of Monte Oro Grid, China’s largest power distributor State Grid Corp. and Calaca High Power Corp., is optimistic it will raise the initial $300-million cash requirement to take over TransCo.
The granting of the franchise by Congress will require the consortium to pay up to 25 percent of the bid price with the balance to be paid within 20 years.
Brown said money will be raised through a combination of equity and bank financing.
Brown earlier said the group was in talks with several local and foreign investor groups that have signified interest to join the project. Multilateral agencies including the Asian Development Bank have even offered to extend loans. – Zinnia Dela Peña
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