Ongpin-led Boerstar wants to buy controlling stake in Atok Big Wedge

Written by Miguel R. Camus / Reporter
Monday, 28 September 2009 19:25

[BUSINESSMIRROR]THE private investment company of former trade minister Roberto V. Ongpin is nearing a deal to buy a controlling stake in listed mining firm Atok Big Wedge Co. Inc.

In a disclosure to the local stock exchange, Atok Big Wedge said it has received a “firm” proposal from holding firm Boerstar Corp., which plans to subscribe to all unissued shares or nearly 58 percent in the miner.

Boerstar will also launch a tender offer for shares held by minority stockholders allowing it to own 80 percent of Atok Big Wedge.  Under the Securities Regulation Code, a company that buys at least 35 percent of a certain entity must offer to buy the shares held by other shareholders.

“The agreements are currently being reviewed by the respective counsels of each party and are expected to be finalized and signed soon,” said the mining company in a statement.

Under the deal, Boerstar will subscribe to unissued shares or 34.78 million shares at a par value of P1 apiece out of Atok Big Wedge’s total authorized capital of 60 million shares.

This will trigger a tender offer, meaning Boerstar will have to pay an additional P25.22 million for the same number of shares should existing stakeholders accept the offer.

At present, existing shareholders have already agreed to tender a minimum of 13.4 million shares.

Meanwhile, Atok Big Wedge said it may explore new investment opportunities beyond mining after the Boerstar acquisition. Read More...

Please click here for Atok PSE disclosure.