MANILA, Philippines - The Ongpin-Ashmore Group, through Boerstar Corp., is acquiring at least 80 percent of inactive Atok-Big Wedge Co. Inc., adding another investment to its mining portfolio which includes Philex Mining Corp.
In a disclosure to the Philippine Stock Exchange, Atok said it has received a proposal from Boerstar to subscribe to all unissued shares of the listed mining firm at P1 per share worth P34.78 million.
Under the plan, Boerstar shall subscribe to 34.78 million unissued shares remaining out of its authorized capital which accounts for 57.97 percent of the authorized and outstanding capital after the subscription.
Boerstar may invest up to an additional P25.22 million to purchase the remaining shares held by minority shareholders pursuant to the tender offer rule as required under the Securities Regulation Coce.
Atok said existing shareholders have agreed to tender a minimum of 13.4 million shares, assuring Boerstar of at least an 80-percent controlling interest in the shell corporation.
“The agreements are currently being reviewed by the respective counsels of each party and are expected to be finalized and signed soon,” Atok said.
Boerstar is beneficially owned and controlled by former Trade and Industry Minister Roberto V. Ongpin and Eric Recto, who represent the London-based investment firm Ashmore Group.
Aside from Philex, Boerstar has significant investments in Philweb Corp., and ISM Communications Corp. Upon its entry, Boerstar intends to beef up Atok’s mining assets as well as invest in oil and gas assets.
“Boerstar has presented its plan to cause Atok to make several investments which they are presently evaluating and which will take effect after the foregoing subscription to and acquisition of the company’s shares are completed,” Atok said.
Organized in September 1931, Atok is a holding company primarily engaged in mining, with gold as its major product and silver as a by-product.
Due to prolonged adverse economic conditions compounded by problems faced by the mining industry, the board and stockholders of Atok redirected the company’s corporate primary purpose from mining to general investment, and listed among its secondary purposes, mining, real estate management and development, manufacturing, food products processing, and lending and borrowing money.
The Securities and Exchange Commission approved these changes on June 24, 1996. Atok subsequently spun off its mining assets to a wholly owned subsidiary mining company, Atok Gold Mining Co., Inc.
At present, Atok is exploring the possibility of entering into a business venture with local and foreign entities to maximize the potential of its mineral properties and to enhance its earnings in the very near future. It will abide by the principle of sustainable and socially acceptable mineral resources development.