SEC okays P10-B capital hike of Atok Big Wedge

abs-cbnNEWS.com

MANILA, Philppines - The Securities and Exchange Commission has given the go-ahead for Atok Big Wedge Co. to declassify its shares and raise its authorized capital stock to P10 billion from P60 million, paving the way for foreign investors to bankroll its diversified ventures.

Atok which is controlled by the group of former trade minister Roberto Ongpin is engaged in oil, gas, mining and natural resources exploration and development.

Atok had earlier proposed to declassify and increase its authorized capital stock from P60 million (divided into 36 million Class A shares with 24 million Class B common shares, all with a par value of P1 per share), to P10 billion (divided into 10 billion shares with a par value of P1 per share).

"The declassification is being proposed to facilitate foreign investment which will help the Company attain the required capitalization for its new endeavor of mining, oil, gas and natural resources exploration and development," the company said earlier.

With the increased capital, Atok can enter into joint ventures with foreign investors that have the financial muscle to plunk in funds for its capital-intensive projects.

Currently, Atok is eyeing oil and gas projects both in the domestic and overseas fronts. It also wants to accelerate its gold and copper operations.

Atok said prospective partners will be investing in the company through Boerstar Corp., a company owned by Ongpin and his nephew, Eric Recto, who represents the London-based Ashmore Group in the Philippines.

The proposed capital hike will be funded by Boerstar's subscription of additional P2.391 billion worth of shares, of which P527 million has been partially paid. Read more...