Trans-Asia gets SEC nod for P1.63-B rights offering

MANILA, Philippines - Trans-Asia Oil & Energy Corp., a unit of the Phinma Group, obtained the Securities and Exchange Commission’s nod to raise up to P1.627 billion from a stock rights offering.

Based on documents submitted to the Philippine Stock Exchange, Trans-Asia will offer 1.415 million common shares to stockholders of record as of Nov. 7 at a price not lower than P1 each share.

Each eligible shareholder is entitled to subscribe to two rights share for every two common shares held as of the record date.

The company has set aside up to 212.25 million common shares for the over-allotment option.

Net proceeds from the offering will be used by the company to partially finance its advances for subsequent conversion into equity and investment in a 54 megawatt wind energy project in San Lorenzo, Guimaras and the planned second 135MW unit of the coal-fired power plant in Calaca, Batangas.

Other proceeds may be used to fund potential investments in other power project opportunities including privatizations of National Power Corp.and the Power Sector Assets and Liabilities Management Corp.

The shares will be priced on Oct. 31 while the offer period will run from Nov.14 to 20. Tentative listing date is Nov.27.

Maybank ATR Kim Eng Capital Partners inc. is the underwriter for the offering.

Trans-Asia is primarily engaged in oil exploration and trading, cement manufacturing, coal trading and power generation.

The company continues to be active in several exploration projects, particularly in large and high-potential areas. It has explored for nickel, copper, silica, gold, and coal in various areas in the country and has an existing Mineral Production Sharing Agreement over an area in Jose Panganiban, Camarines Norte.