Ongpin eyes control of mining firm

The group of ousted Belle Corp. chairman Roberto Ongpin is trying to make a big comeback in the stock market, training its sights on listed but hardly traded mining firm South Seas Natural Resources Inc.

South Seas president Jose Miguel Cabarrus informed the Philippine Stock Exchange that they have received a formal offer from Ongpin's group last Tuesday to acquire a controlling stake in the company.

Ongpin, a former minister of trade during the Marcos era who masterminded the rise of Belle Corp. into a stock favorite with its entry into jai-alai, had indicated that his group would be willing to invest up to P600 million into South Seas and transform the firm into an Internet-based company.

South Seas, incorporated in August 1969, is engaged in gold mining and milling with silver as by-product. Its mine site, with a total claim area of 878 hectares, is located in Sison, Surigao del Norte, and produces gold and silver sold directly to the Bangko Sentral ng Pilipinas.

With the planned entry of Ongpin, South Seas will increase its capital stock to accommodate another 600 billion shares priced at a par value of one centavo per share, and divest its mining business so that it will "substantially have no tangible mining assets or liabilities upon the entry of the Ongpin group."

Cabarrus said other terms of the offer, aside from the increase in capital and change in the company's primary business line, include the corresponding change in corporate name and satisfactory due diligence by the investor group.

He added that if the board finds the offer acceptable, the appropriate resolutions will be submitted to the stockholders for their action during the annual meeting on Jan. 18.

"While the offer is in line with the company's plans to convert South Seas from a mining company to a company which will undertake another business in view of the depressed condition of the mining industry and to thereby avoid further expenses and losses in its mining operations, we wish to emphasize, however, that at this time, no firm agreements have been reached by South Seas with the Ongpin group, or any other group for an investment in the company," he said. -