Posted on 06:44 PM, December 23, 2009 [ BusinessWorld Online ]
MINORITY shareholders of listed Macondray Plastics, Inc. approved on Wednesday the increase in authorized capital stock of the company to facilitate a merger with Alphaland Corp., and the latter's subsequent backdoor listing.
From just P400 million, Macondray Plastics' capital stock will be raised to P5 billion. The listed firm said it would apply with the Philippine Stock Exchange for the additional listing of 1.26 billion primary shares to be issued to stockholders of Alphaland out of the increase in authorized capital stock, in connection with a share-for-share swap between the companies.
Macondray Plastics said the shares to be issued to stockholders to implement the merger would be based on the exchange rate of one Alphaland share for every 5.08 new shares of Macondray Plastics.
Macondray Plastics has also changed its primary purpose from that of a manufacturing company to a holding company.
With the entry of Alphaland, a total of P12.7 billion worth of prime property will be infused into Macondray, namely: the Alphaland Southgate Tower and Mall, The Alphaland Tower, Alphaland Bay City, Alphaland Makati Place, and Shangri-La at the Fort.
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, respectively.
RVO Capital Ventures had acquired a 66% stake in the formerly Lorenzo-led Macondray Plastics for P218 million. Subsequently, it offered to buy the shares of Macondray Plastics minority shareholders.
Following the acquisition, shares in Macondray Plastics skyrocketed to P60 apiece on Wednesday from a low of P3 on Oct. 12, a week after RVO Capital Ventures bought the 66% stake.
Aside from Macondray Plastics, the group had acquired 80% of listed mining company Atok-Big Wedge, Inc. through investment company Boerstar Corp. This was 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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