Omico shares shoot up on rumored foreign investor

Shares of Omico Corp. rose 22 percent yesterday on rumors a foreign company was buying into the mining and property firm.

Omico, the third top gainer on the stock exchange yesterday, closed at two centavos each share on total volume of 17.4 billion shares, accounting for 22 percent of the company’s outstanding shares.

Fueling the speculation was the divestment by Omico president Tommy Tia of his 4.5 billion shares coursed through a special block sale at the Philippine Stock Exchange yesterday at 1.3 centavos each for a total of P58.5 million.

The market has been abuzz with rumors that Omico is set to sign a joint venture agreement with a foreign mining company.

It was earlier reported that a foreign mining company was looking into a possible partnership with Omico with respect to the latter’s copper mine in Benguet province.

In 1993, a massive landslide halted the company’s mining operations there, resulting in the cessation of all its exploration activities and diversification into property and investment holding activities.

Omico is licensed to operate, prospect mine and deal with ores, metals and minerals such as gold, silver, copper, lead, zinc, brass, iron, steel, limestone and their by-products.

The company’s near-term objective is to rearrange its asset structure by reducing its property holdings while considering opportunities outside of the sector.

Late last year, Omico signed a joint venture agreement with the Gokongwei family’s Robinsons Homes Inc. for the development of the former’s 9,372-square meter property in Tagaytay into a high density residential subdivision consisting of five-story residential condominium buildings.

Robinsons Homes will be the developer of the project while Omico is the landowner.

Robinsons Homes is the housing development division of Robinsons Land Corp., the property arm of the Gokongwei group of companies.