MWIDE’s P66 billion order book
MWIDE signed new contracts for P1.24 billion in the first quarter of this year, increasing its order book to P66.1 billion as of March 2021. This comprises 350 housing units in Johndorf Ventures’ Coral Village project in Lapu-Lapu City, Cebu; 1,974 housing units in PHirst Park Homes’ Batulao, Batangas project; and Westside City’s retail strip and theater complex, among other developments.
SMC subsidiary proposes a 300-MW hydropower project in Aklan.
(SMC, Php116.70; BUY, TP:Php131.00)
Strategic Power Development Corp., a subsidiary of SMC Global Power Holdings Corp. and San Miguel Corporation (SMC), intends to construct a 300-megawatt (MW) pumped-storage hydro power plant in Malay, Aklan, to satisfy Visayas area reserve power needs. The project, which would run along the Nabaoy and Imbaroto rivers, intends to provide a portion of the Visayas region’s renewable energy requirements, especially during peak hours. By supplying auxiliary services and peaking electricity, this would also help to stabilize the Visayas grid. The hydro project will include two dams, power canals, and an underground powerhouse accessible by a 577-meter access tunnel.
Vulcan Industrial & Mining Corp. inks a Memorandum of Understanding with East Coast Mineral for the subscription of 5.18 billion shares
Vulcan Industrial & Mining Corp. (VUL) has signed a memorandum of agreement (MOA) with the majority shareholders of East Coast Mineral Resources Co. Inc. (ECMRC), represented by the HGP Group, for the subscription of 5.18 billion additional VUL shares from its enlarged authorized capital stock. The price per share will be Php1.00, and the total amount of consideration will be Php5.18 billion, which will be paid by ECMRC in the form of shares and any extra cash payment based on the findings of the third-party valuation/fairness opinion.
Following the deal, HGP Group would hold a total of 5.67 billion shares of VUL, including 486.5 million in previously acquired shares. These shares account for roughly 85.5 percent of VUL’s total outstanding shares.
Except for HGP Group, all stockholders must be open to the public. The remaining 963.94 million shares, or 14.54 percent, will comprise the public float. This resultant percentage, however, does not include the shares of existing directors who will be retained following the annual meeting, if any. Given the anticipated decrease in the public float from 40.37 percent to 14.54 percent, VUL commits and undertakes to arrange third-party equity placement to meet the necessary minimum public float.
HGP’s shares in ECMRC will be transferred to VUL upon the HGP group’s acquisition of VUL on September 1, 2021. This would result in VUL having a stake in three of ECMRC’s current nickel mines in the Danagat Islands: Cagdianao Mining Corp. Commercial Operations, Oriental Vision Mining Philippines Inc. Exploration, and Libjo Mining Corp. Commercial Operations.
Converge collaborates with Tata Consultancy to provide customer service
Converge ICT Solutions, Inc. (CNVRG) has joined forces with Tata Consultancy Services (TCS) to improve the entire client experience. The collaboration seeks to streamline corporate procedures, accelerate product creation, and personalize CNVRG’s client interaction. TCS is a worldwide information technology services company that provides consulting and business solutions to help companies simplify, enhance, and change.
PCC exempts the merger of BPI and BPI Family from mandatory notice
(BPI, Php85.25; HOLD, TP:Php95.20)
The Philippine Competition Commission (PCC) has excused the planned merger of Bank of the Philippine Islands (BPI) and its wholly-owned thrift subsidiary BPI Family Savings Bank (BFSB), with BPI as the surviving company, from mandatory notice since it qualifies as an internal reorganization. However, PCC said that the exemption does not preclude the regulatory body from conducting a review if the parameters of the transaction are found to be inconsistent with current facts and disclosures. Remember that the PDIC just gave permission to the proposed merger, pending to BSP approval. The merger is expected to go into force on January 1, 2022, according to BPI.