Minerales Industrias turns into a holding firm

MANILA, Philippines - Listed mining firm Minerales Industrias Corp. (MIC) is reorganizing into a holding firm ahead of its impending takeover by construction and waste management firm IPM Group of Companies.

In a regulatory filing, MIC said the Securities and Exchange Commission approved “the amendment of the primary purpose clause of MIC to that of a holding company.”

Its authorized capital stock will also increase to P740 million from P240 million.

The reorganization was approved by the company’s stockholders and board of directors early this year.

This gives MIC the leeway to issue P500 million worth of new shares to IPM Group, a major player in the construction industry and the operator of the Payatas landfill.

In February, MIC shareholders approved the IPM Group’s takeover through a P500-million investment.

Headed by businesswoman Isabelita Paredes Mercado, the IPM Group will acquire shares in MIC that will be taken out of the firm’s increase in authorized capital.

Specifically, IPM Construction and Development Corp., IPM Environmental Services Inc. and IPM Realty and Development Corp. will infuse P350 million, P100 million and P50 million to MIC, respectively.

MIC shareholders also approved the investment of approximately P470 million from the proceeds of the subscription into Basic Environmental Systems and Technologies Inc. (BEST).

The acquisition of BEST, the country’s largest integrated waste solutions provider, will shift MIC’s focus from mining metals to mining tons of municipal solid waste being collected, processed and recycled into renewable source of energy such as refuse derived fuel.

Late last year, BEST senior vice-president Dwight Ramos said the company is looking forward to becoming part of the stock market.

BEST was organized in 1999 primarily as a garbage collection contractor for Metro Manila and hauling these wastes to landfill areas. In 2005, the company began its march towards providing total waste management by being involved in the rehabilitation and closure project of the Payatas controlled dump facility in Quezon City.