Island Information sets stock rights issue

Publicly-listed Island Information & Technology Inc. (IIT) is planning to raise around P122.14 million from a stock rights offering in November this year, according to a registration statement filed with the Securities and Exchange Commission.

Formerly Island Mining & Industrial Corp., IIT will offer 12.21 billion common shares at their par value of P0.01 per share. The shares to be issued will account for 71.43 percent of the issued and outstanding common shares of the company after the offer.

IIT said the shares will come from the increase in its authorized capital stock from P50 million to P500 million.  Shareholders can buy 2.5 shares for every common share held as of Nov. 13, 2008.

Proceeds from the pre-emptive rights issue will be used to acquire a controlling stake in Admiral Container Depot Inc., which services the storage, handling, and hauling/ship-out requirements of different entities to include shipping lines, freight forwarders and other container yards.  After the offer, IIT will own 88.61 percent of Admiral Container.

AB Capital & Investment Corp. has been tapped as issue manager and lead underwriter for the rights offering, tentatively scheduled on Nov. 17 to 26.  Listing of the shares has been set on Jan. 14, 2009.

Admiral Container will utilize the fresh equity to expand its operations, specifically to acquire new equipment and fund its working capital requirements.

According to IIT, the development of container yard depots is an integral component of the country’s infrastructure development program.   

“The company believes that the establishment of cargo management services will support the trade activities of the country as the current trend shows a sustained growth of shipment volumes of goods and products imported into and exported out of the Philippines,” IIT said. 

Admiral Container currently leases a total area of 10,562.18 square meters of land within the Manila Harbour Center Complex.

IIT was originally incorporated on Dec. 10, 1959 primarily to undertake discovery and exploration of oil and mineral development projects. – Zinnia dela Peña