MRC finalizes tie-up for Lodestar buy-in

BusinessMirror
Written by Miguel R. Camus / Reporter

MRC Allied Inc. is finalizing a partnership with a US-based fund to support its bid to take a controlling stake in Lodestar Investment Holdings Corp., a Philippine listed firm that holds coal mine assets in northern Mindanao.

In a phone interview, MRC Allied representative Benjamin Bitanga said the venture is prepared to spend between P1.2 billion to P1.4 billion for the said acquisition.

The company official, however, declined to name the partner only disclosing that it is a private equity firm based in Boston.
“Realistically, we can complete [the acquisition of Lodestar] by May,” said Bitanga, “We will try to shoot for 70-percent [ownership].”
The buy-in fits into MRC Allied’s plan to shift from real estate operations to that of a “total energy company.”

The MRC Allied official explained that the valuation is based on the net present value of expected earnings of Lodestar’s coal project.

Lodestar is the owner of Abacus Coal Exploration and Development Corp., which holds a coal operating contract for a 7,000-hectare property in Tago and Marihatag in Surigao del Sur. Reserves of the coal project are valued at approximately P2.7 billion, noted Lodestar earlier. Read more...

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