MANILA, Philippines - Nickel miner Platinum Group Metals Corp. (PGMC) is moving forward with its plan to enter the local bourse via the backdoor route through dormant listed firm Southeast Asia Cement Holdings Inc. (Seacem).
In a disclosure to the Philippine Stock Exchange, Seacem said its board of directors has approved the change of its corporate name to Global Ferronickel Holdings Inc. as well as the increase in its authorized capital stock to P12.555 billion from P2.555 billion.
Seacem is also set to issue 10.463 billion common shares out of the increased capital stock to PGMC stockholders in exchange “for the sale and transfer of 99 percent of the outstanding shares of PGMC.”
A backdoor listing offers a cheaper and faster way to achieve listing status. This occurs when a listed firm is acquired by an unlisted firm and the merger will result in a change in business.
Stockholders of 8990 Housing Development Corp.in June last year signed a deal to acquire Seacem for P2.57 billion.
Seacem stockholders Calumboyan Holdings Inc., Lafarge Philippines Holdings Philippines Inc. and Seacem Silos Inc. sold 89.87 percent of Seacem to IHoldings Inc., Januarius Resources Realty Corp. and Kwantlen Development Corp.
Seacem divested P11.35 billion worth of shares in listed cement maker Lafarge, leaving Seacem with no assets and ready for a backdoor listing transaction.
For its part, PGMC has been operating a nickel mine in Cagdianao, Claver, Surigao Del Norte for the past six years.
PGMC is also the company operating smelter plants in Iligan, Danao and Manticao.