ATR-Kim Eng hikes capital to P1.3 billion

The Securities and Exchange Commission (SEC) has approved the increase in the capital stock of ATR-Kim Eng Financial Corp. (formerly Philtread Holdings Corp.) from P300 million to P1.3 billion.

The company is owned by Filipino-Singaporean firm ATR-Kim Eng Capital Partners Inc. (40.45 percent), Philex Mining Corp. (24.74 percent), Bridgestone/Firestone Inc. (13.14 percent) and Motherwell Inc. (5.95 percent).

ATRKE Capital’s primary business is investment banking, focusing on corporate finance and fixed income, securities brokerage and trust services. As of end 2001, it ranked among the top 10 investment houses in the country.

The company was originally known as Peregrine Capital Philippines Inc., the Philippine affiliate of Peregrine Investment Holdings Ltd. of Hong Kong until the ATR Holdings Group fully acquired it in 1998. A year later, ATR sold a 43.03 percent to Kim Eng, a Singaporean-listed investment holding company that owns a network of stockbrokerages in the Asian region as well as sales offices in New York and London.

The ATR Group is composed of local investment bankers Ramon Arnaiz, Manuel Tordesillas and Lorenzo Roxas, with US-based private equity fund Gilbert Global Equity Partners Inc.

In line with its reorganization and transformation into a diversified financial services company, ATRKE Financial has undertaken a P1.2-billion stock rights offering and warrants offering.

The offering involved 500 million new shares along with 100 million detachable warrants that are convertible into common shares at P2 apiece.

Net proceeds from the offering, amounting to P956.51 million, were used to partially finance the acquisition of the entire issued and outstanding capital stock of ATRKE Capital.

ATRKE Financial said it will continue its diversification into related financial services-related businesses that can provide recurring and stable earnings to the company.

Incorporated on October 1930 as Firestone Tire & Rubber Company of the Philippines, the former Philtread Holdings engaged in the manufacture of automotive tires under the "Firestone" brand.

In 1993, the company began to incur heavy business losses due to slowdowns in production brought about by severe labor problems and the unabated dumping of foreign tires in the country, which adversely affected the local tire industry. Crippled by its huge debt, Philtread halted manufacturing operations, eventually closing the facility to prevent further losses.

With the sale of its properties and assets, Philtread became a holding company whose main assets included a 60-percent equity in Sucat Land Corp. and a minority stake in MSF Tire.