SEC okays ATR-Kim Eng's P623-M stock rights offer

The Securities and Exchange Commission has approved ATR-Kim Eng Financial Corp.’s P623.23 million stock rights offering to fund the expansion of its insurance and lending businesses as well as real estate ventures.

Based on its registration statement filed with the SEC, ATR-KE said it will offer a total of 230.825 million shares at P2.70 each share, which is equivalent to the net adjusted book value per share of the company’s share as of Dec. 31, 2007. Shareholders can buy one share for every three shares held as of Oct. 15.

Of the total shares, ATR-KE will offer to the public some 46.16 million shares.

The offering will start on Oct. 27 and end Nov. 7. Listing of the shares has been scheduled on Nov. 18.

Bulk of the proceeds or P400 million will go to the improvement of  ATR-KE’s retail brokerage and asset management operations and the expansion of the Department of Education Teacher Lending program and real estate business.

Around P80 million to P120 million will be used to repay debt to BPI Family Bank (P41.25 million), and Union Bank of the Philippines (P77.67 million).

Another P80 to P120 million has been set aside for working capital and other corporate purposes.

ATR-KE said its major shareholders ATR Holdings Inc. and Kim Eng Holdings Ltd. of Singapore are willing to fully take up their stock rights entitlements.

ATR-KE’s wholly owned subsidiaries include investment bank ATR KimEng Capital Partners Inc., brokerage house ATR KimEng Securities Inc. property developer ATR KimEng Land Inc., and AsianLife and General Assurance Corp., an insurance provider.  – Zinnia dela Peña