Ferronoux revives P1-B capital increase plan

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 an increase in authorized capital stock from P550 million, divided into 550 million common shares, to P1 billion, or 1 billion common shares. The par value is P1 each.

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 at least 356 million common shares from its unissued and increased authorized capital stock.

The company said the property has a book value of about P515.5 million, with the transfer to be carried out at book value. The shares to be issued for the transaction will also be listed 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 is intended to help the company comply with the minimum public ownership requirement, with the new shares likewise to be listed on the local bourse.

In addition, the company extended the deadline for Themis Group Corp.’s subscription to 80 million common shares under the private placement. The subscription will now be completed after the property-for-share swap or once the land title covering the subject property has been transferred to Ferronoux.