Recto-led group buying into Ajo-net via P1.3-billion share swap

By Zinnia B. Dela Peña (The Philippine Star) 

MANILA, Philippines - A group led by former Lepanto Mining president Ramon Recto is buying into listed investment holding firm Ajo-net Holdings Inc. through a share swap valued at P1.3 billion.

Ajo-net told the Philippine Stock Exchange that its board approved the change of corporate name to Marcventures Holdings Inc. with the expected acquisition by Marcventures Mining & Development Corp. (MMDC) of a 97-percent stake in the holding company.

Under the proposed deal, MMDC shall subscribe to 45 billion shares of Ajo-net at the new par value of one centavo or a total of P450 million out of the increase in capitalization from P200 million to P2 billion.  Out of the capital hike, MMDC shall infuse P350 million in cash and the balance of P100 million shall be payable by way of assignment of 153,846 MMDC shares.

MMDC, a mining firm based in Surigao del Sur, will subscribe to an additional 115 billion shares in consideration for the assignment of 1.769 million MMDC shares at an agreed value of P1.15 billion.

Asian Alliance Investments Corp. is the financial advisor for the transaction.

Augusto Serafica Jr., executive director of Asian Alliance, said the deal also involves Ajo-net’s transfer to MMDC of 499 Metroclub certificates including its P17.5-million obligation to Philippine Townships Inc. Read  
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