Listed company A. Brown Company Inc. plans to raise P1.5 billion from the issuance of preferred shares.
A Brown said in a disclosure to the stock exchange Wednesday it would offer and issue non-voting preferred shares under the planned 50 million preferred shares shelf registration program.
The company tapped PNB Capital and Investment Corp. as the sole issue manager for the offering.
The preferred shares will be registered with the Securities and Exchange Commission and will be listed with the Philippine Stock Exchange. The fund raising activity is subject to SEC’s approval on the company’s proposed amendment to the articles of incorporation.
The company last month signed an agreement with Abacore Capital Holdings Inc. to jointly explore energy and mining projects. A. Brown’s subsidiary Vires Energy Corp. plans to build integrated natural gas-fired floating power plant and LNG terminal project in Batangas.
Under the agreement, Abacore will offer its property in Batangas as potential site for VEC’s planned project.
A. Brown also expressed interest in Abacore in operating its gold and copper mining project in Agusan del Sur.
Meanwhile, A. Brown reported that its board approved the extension of its share buyback program for additional P100 million from initial P50 million. The move to buy back shares, which will be implemented for a period of one year, aims to improve shareholder value.
“Through the buying back of common shares, capital is distributed back to the shareholders while taking advantage of the undervalued market price,” the company said.
