Friday, November 20, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
Listed Macondray Plastics, Inc. yesterday confirmed market speculation that it would be used by the Ongpin group for the backdoor listing of property firm Alphaland Development, Inc.
In a disclosure yesterday, Macondray Plastics said it had offered its shares to Alphaland to facilitate the planned backdoor listing. The share-for-share swap will come from the proposed increase in Macondray Plastics’ authorized capital stock to P5 billion from P400 million.
Macondray Plastics said out of said increase, 1.27 billion shares would be issued to stockholders of Alphaland at an exchange rate of one Alphaland share for every 5.08 new shares of the Macondray Plastics.
In line with the backdoor listing, Macondray Plastics will hold a stockholders’ meeting on Jan. 15 and will, among others, seek the approval of minority stockholders for the change in its corporate name to Alphaland Corp.
Macondray Plastics is 95% owned by RVO Capital Ventures Corp., a company beneficially owned and controlled by Roberto V. Ongpin and Eric O. Recto, chairman and president of the plastic firm, respectively.
RVO had purchased a 66% stake in the formerly Lorenzo-led firm for P218 million. Subsequently, it offered to buy the shares of Macondray Plastics’ minority shareholders.
Following the acquisition, shares in Macondray Plastics skyrocketed to a record of P32.50 apiece on Oct. 20, from a low of P3.00 on Oct. 12, a week after RVO bought the stake.
Shares in the company climbed on rumors that the Ongpin group would use it for backdoor listing of its property firm.
Yesterday, the Philippine Stock Exchange suspended the trading of the shares of Macondray, pending the company’s submission of a comprehensive corporate disclosure containing the details of the backdoor listing. Shares in the company did not move at P21 apiece.
Macondray Plastics is engaged in the manufacture of plastic products primarily for agriculture firms and banana exporters.
The company had said it might spin off its operations to newly established Macondray Plastics Products, Inc. to allow it to venture into other businesses like real estate.
Meanwhile, Alphaland is a property company that is 60% owned by Philippine companies led by Mr. Ongpin, and 40% by Alphaland Holdings ( Singapore ) Pte Ltd., a subsidiary of the Ashmore Group.
The management of Alphaland is likewise led by Messrs. Ongpin (chairman of the board) and Recto (vice-chairman).
Among Alphaland’s major projects are: the Alphaland Southgate Tower, Alphaland Makati Place, Alphaland Bay City, The Alphaland Tower and Shangri-La at the Fort.
Aside from Macondray Plastics, the Ongpin group had acquired 80% of listed mining company Atok-Big Wedge, Inc. through investment company Boerstar Corp.
These are on top of holdings in companies such as San Miguel Corp., Petron Corp. Philweb Corp., ISM Communications Corp., and Philex Mining Corp., the country’s largest miner. -- Kristine Jane R. Liu
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