Mic Holdings seeks deferment of 10% minimum public float

MANILA, Philippines - Publicly-isted Mic Holdings Corp. will ask the Philippine Stock Exchange (PSE) for the deferment of its compliance with the minimum 10-percent public float requirement until the third or fourth quarter of next year.

This as Mic chairman and president Michael Romero told The STAR that they expect to completely turn around the company’s financial performance very soon.

“Once the additional capitalization of about P2.5 billion has been pumped in, Mic could expand more aggressively and income-generating activities would augment the company’s expansion,” he said in an interview.

The company is looking at acquiring at least seven domestic ports and a number of foreign ports. It is participating in biddings to operate international ports such as those in Guam, Vietnam, Russia, Sri Lanka and Indonesia.

Mic also plans to acquire new companies, which include those that are into ports, information technology, dredging, and logistics.

Romero’s group, through Sultan 900 Capital, has offered to acquire the remaining five percent of Mic held by minority shareholders. Around 18,074 shares were tendered, increasing Sultan 900’s stake in Mic to 98.6 percent. Sultan will be applying for approval of the PSE of a special block sale considering that the tender offer price is higher than the market or par value of the shares.

As of June 2011, before the new owners of Mic came in, the company posted a net loss of P397,888, which is still lower than the P443,300 loss suffered in the same period last year.

Romero said within three months, Sultan 900, an investment company that he owns, would pay for the entire subscription. Sultan acquired last month 95.2 percent (517,216 common shares) of Mic from Ventcap, a group identified with businessman Antonio “Tonyboy” Cojuangco. for P175 million.

As for compliance with the minimum 10 percent public float, he said that “we have not decided whether it will be the third or fourth quarter of next year. Right now, it is just the increased capitalization.”

He disclosed that they plan to raise at least $200 million next year to acquire and/or operate both domestic and foreign-based seaports. Half would be for the acquisition of the seven domestic ports while another $100 will be for foreign ports. This will be financed from both internally-generated funds and new equity.

From a total authorized capitalization of P100 million (one million shares with a par value of P100), the new board of directors of Mic has approved an increase to P2.6 billion, a reduction in the par value of the shares to P1, and a change in the company’s secondary purpose to include “owning, investing, managing, operating, maintaining, and developing port facilities, including other maritime activities supportive of port operations and shipping,” all of which will be submitted to the shareholders for ratification.

According to Romero, they will retain in the meantime Mic’s primary purpose, which is information technology. Mic, even before the new owners came in, has been in negotiations to acquire an interest in Hong Kong-based Cyber Hunt Ltd. (CHL) from Cyan Management Corp. The move is intended to increase the company’s experience in the design and provision of location-based services in the local market by linking with a business entity that has major prospects for a comparable line of services abroad.

Mic’s board of directors has also approved a change in the company’s name to Globalport Terminals Inc., and an increase in the number of board of directors from seven to nine.

Also to be submitted for shareholders’ approval is the subscription by Sultan 900 of the 457,897 unissued shares of Mic and the waiver of the requirement to conduct a rights or public offering for the subscription.

Romero explained that the increase in authorized capital will allow Sultan 900 to infuse additional funds into the company.

Mic will soon undergo a corporate restructuring, which may include acquiring existing port-related businesses of the Harbour Group (Harbour Centre as well as a 65 percent stake in the Manila North Harbor Port Terminal Inc.), Romero revealed.

Romero earlier told The STAR that they are being “swarmed” with offers from both foreign investors and port operators who want to invest or enter into joint venture agreements with his group. “At the same time, we are also offering to enter into partnerships or acquire both domestic and foreign ports,” he said.

Romero is the chief executive officer of Harbour Centre Port Terminal Inc. (HCPTI), which owns 65 percent of Manila North Harbour Port Inc. (MNHPI), a joint venture with Petron Corp. MNHPI holds the 25-year contract to develop, manage, and operate North Harbor, the country’s biggest and busiest domestic port. Romero’s group also owns Harbour Centre, a 15-hectare multi-purpose private commercial terminal located within a 79-hectare port-city complex called Manila Harbour Centre.