MANILA, Philippines - AGP Industrial Corp., one of the oldest and largest diversified engineering and general construction firms, is jacking up its capitalization to P2 billion from P200 million to pave the way for its diversification into real estate development, mining and agriculture.
In a disclosure to the Philippine Stock Exchange yesterday, AGP said the capital increase will be undertaken in several tranches as determined by its board of directors.
AGP said its board likewise approved the creation of several subsidiaries with the authority to engage in the business of real estate, mining development and sub-contracting and equipment leasing, and palm oil production and processing.
In the doldrums since 1998, AGP has since found a white knight, an investor group that will provide a new business direction, infuse fresh capital and finance its commercial activities.
In line with this new thrust, the company is seeking a change of its name to either ACG Holdings Inc., AC&G Assets Corp., Alta Global Agglomerate Inc. or Assets Consolidated Gains Corp.
AGP likewise approved the issuance of P136.678 million worth of shares to various investors, led by SunPlaza Development Corp., through a private placement.
These proposed actions are still subject to approval of stockholders in the next shareholders meeting of the corporation.
Following a nine-month dormancy, AGP will resume of trading in its shares on June 22. This after a successful quasi-reorganization which allowed the company to reduce its deficit from P511 million to only P24 million.
To give it enough breathing spell, AGP sold its shares in Atlantic Gulf and Packaging Co. of Manila to TPIC for P77.2 million in 2003. The proceeds of the sale were applied against the company’s obligations to TPIC.