Vulcan Industrial & Mining Corp. share sale fuels Converge backdoor rumors

MANILA, Philippines — Vulcan Industrial & Mining Corp., controlled by the Ramos family of National Book Store, has approved the subscription of Zap Cove Development Corp. of shares in the company, fueling rumors that it will be used for a backdoor listing by third telco aspirant Converge ICT Solutions Inc.

Converge ICT is owned by Dennis Anthony Uy of Pampanga. The company is teaming up with South Korea’s largest telecommunications company, KT Corp., to participate in the bidding for the country’s third telco player.

Vulcan said its board of directors in a meeting Wednesday approved the assignment of National Book Store’s subscription rights over 486.055 million partially paid shares to Zap Cove Development Corp.

It also approved the additional subscription of Zap Cove to up to 2.55 billion shares out of its authorized, but unsubscribed capital stock with a par value of P1 each, subject to various approvals and conditions.

A decision to amend the company’s primary and secondary purposes from mining to holding and “such other purposes as management deems fit” has also been approved.

Vulcan said it would cease to engage in the business of mining, oil, petroleum, industrial development, and mineral processing.

Vulcan in 2013 changed its primary purpose from mining and oil exploration to retail, and relegated mining and oil exploration as secondary purposes.

As of end 2017, the company had no commercial operations since it is only in the stage of exploration.

The Philippine Stock Exchange approved the request of Vulcan for a voluntary trading suspension of its shares on Wednesday, which will be lifted on Monday once trading resumes.

Converge ICT announced last August strategic partnerships with several local and foreign companies such as KT, LSI-Fibernet Konstruk Corp., and TE Connectivity Subcom for a massive $2-billion nationwide network rollout over the next five years of its pure fiber internet connectivity.

Converge ICT is regarded as the fastest-growing pure fiber internet and other digital consumer-centric services provider in the country today.

The company has earlier expressed intent to provide Filipinos with better services at cheaper costs, by possibly becoming the country’s third telco player.