TA Oil plans P2.2-billion stock rights offer

MANILA, Philippines - Trans-Asia Oil and Energy Development Corp. (TA Oil), a unit of the Philippine Investment-Management Inc. (Phinma) Group, is planning to undertake a pre-emptive rights offer worth about P2.2 billion by June this year, a ranking company official said.

Roberto M. Laviña, TA oil executive vice president and chief finance officer, said they are firming up the planned offering after they secured regulators’ approval to raise its authorized capital stock by P2.2 billion in November last year.

“The shareholders approved an increase in authorized capital and also a pre-emptive rights issue. The increase in authorized capital is by P2.2 billion or 2.2 billion shares so what we meant to do is to have to a pre-emptive rights issue,” he said.

He said depending on the timetable, they hope to be able to push through with the rights offer by the middle of the year.

Laviña, however, said the timing still hinges on the regulatory approvals and market condition.

Laviña said they are still finalizing the exact amount of the offering.

“(On our) pre-emptive rights, the amount is highly dependent on several factors, one is how the market is at that point. The second thing is how much we need and the need is going to be dependent upon the various projects that we’re working on, including the (bidding for) wind and Ilijan and Angat. If we’re able to win, those are the various projects we’re working on,” he said.

According to the TA Oil official, they would also try to tap loans to back up the financing of its various projects.

“There will also be loan components, depending on the projects, but project finance will certainly be from part of the capital that would be needed, the funding that will be required to be able to support the different projects we’re working on. We’re working on maybe 60 percent loan component for each of the projects,” he added.

TA oil plans to put up wind projects in 38 sites around the country that would generate 400 megawatts of power and will cost nearly $1 billion over the long term.

TA Oil was registered with the Securities and Exchange Commission on Sept. 8, 1969 with primary purpose of engaging in electric power generation, distribution and serving, in addition to oil exploration within the Philippines and in other countries, among others.

Its shares are listed at the Philippine Stock Exchange. It has an existing 3.4 megawatt Bunker C-fired power plant in Jordan, Guimaras.

The company also runs a 52-MW power plant which supplies all the requirements of affiliate Union Cement Corp. in Norzagaray, Bulacan and Bacnotan, La Union. It also owns a 21 MW diesel plant located at the Carmelray Industrial Park II, Calamba City, Laguna.