MANILA, Philippines — Ferronoux Holdings Inc. is seeking shareholder approval to nearly double its authorized capital stock to P1 billion as it moves ahead with a property-for-share swap and a private placement aimed at supporting its planned expansion and meeting public ownership requirements.
In a disclosure on Monday, shell company-led Ferronoux said its board approved increasing the company’s authorized capital stock from P550 million, divided into 550 million common shares with a par value of P1 each, to P1 billion, or 1 billion common shares.
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A major component of the capital-raising plan is a property-for-share swap with Eagle I Landholdings Inc.
Under the proposal, Ferronoux will acquire a 33,077-square-meter parcel of land located at Manila Bay Resorts, Aseanworld City Boulevard, Parañaque City in exchange for the issuance of at least 356 million common shares from the company’s unissued and increased authorized capital stock.
Ferronoux said it will transfer the property, valued at about P515.5 million, at book value. The company will also list the shares issued for the transaction on the Philippine Stock Exchange..
Separately, the board approved a private placement of up to 30 million common shares through investor subscriptions.
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Ferronoux said the issuance will help it meet minimum public ownership rules, with the new shares to be listed on the Philippine Stock Exchange.
In addition, it extended the deadline for Themis Group Corp.’s subscription to 80 million common shares under the private placement. The company will complete the subscription after the property-for-share swap or once Ferronoux receives the land title. /pai INQ
