The company informed the Philippine Stock Exchange (PSE) that in a special meeting of the board of directors last week, the memorandum of agreement (MOA) with PhilWeb.com was approved. Under the MOA, AGRC will tap PhilWeb to "identify suitable investment opportunities in gaming, information technology, media, telecommunications, or similar industry, as well as identify and negotiate with investors for such ventures."
In consideration of the services to be rendered by PhilWeb, AGRC has granted it the option to subscribe to 40 percent of the expanded subscribed capital stock of AGRC at par value, by making a partial payment of 25 percent on such subscription, said AGRC vice president and general manager Ponciano Mathay.
He added PhilWeb can exercise the option only after approval by AGRC of the investment program and shall be valid for a period of three years after such approval. In this case, PhilWeb chairman, former Trade Minister Roberto Ongpin will also assume AGRC’s chairmanship while its present chairman Luis Co Chi Kiat is designated chairman emeritus.
AGRC is the second publicly-listed company where PhilWeb assumed a sizable minority stake in exchange for its IT and Internet-related services. Just recently, it gained control of Itogon-Suyoc Mines Inc. through a private placement also equivalent to 40 percent of the company’s outstanding capital.
Mathay said out of the P2.3-billion capital increase, P100 million will come from a stock rights offering for the remaining unissued authorized capital of AGRC, wherein existing stockholders can avail themselves of additional stocks at a ratio of one share for every six shares (1:6) held as of record date.
Another P575 million will come from the private placement to be subscribed by the duty-free shopping chain PureGold Group, which already owns a substantial stake in AGRC, Mathay added.
"The implementation of the capital increase was deferred due to adverse economic conditions in the last semester of the year 2000 and 2001. Current economic forecasts indicate an improving business climate both locally and worldwide. The implementation of the approved increase in authorized capital positions the company to benefit from this stronger economy," he said.
AGRC was the top gainer in yesterday’s trades at the PSE, climbing 17.6 percent or 0.0015 centavo to close at its par value of P0.01.
AGRC was incorporated in 1987 mainly for the exploration, development and production of oil and gas properties as well as minerals. It has since converted into a holding company as it seeks other businesses in a bid to strengthen its operating revenues.
As of end-2001, AGRC’s board of directors include chairman Luis Co Chi Kiat; vice-chairman and president Eduardo Hernandez; vice president and general manager Ponciano Mathay; vice president and treasurer Leonardo Dayao; and directors Robert Cokeng, Estelito Mendoza and Lucio Co.