Ongpin group finalizes purchase of Atok Big Wedge stake


Posted at Oct 22 2009 09:44 PM | Updated as of Oct 23 2009 05:44 AM

MANILA - The Ongpin group, through Boerstar Corp., has finalized a deal to acquire up to 58% of listed mining firm Atok Big Wedge Co Inc.

In a disclosure to the Philippine Stock Exchange, Atok said it has executed a deed of subscription with Boerstar Corp., wherein the latter will subscribe to a total of 34.781 million common shares of the company for a total of P34.781 million.

"These shares represent approximately 58% of the company's resulting outstanding capital stock," Atok said.

To date, the mining firm has a total of 25.2 million issued and outstanding shares out of its authorized capital of 60 million shares.

Boerstar will also conduct a tender offer for the remaining shares owned by the public which are valued at about P25.21 million.

Initial indications showed that shareholders owning 13.4 million shares are willing to accept Boerstar's offer, assuring it control of at least 80% of Atok.

Boerstar is a Philippine company with significant investments in several listed firms, namely PhilWeb Corp., ISM Communication Corp., Philex Mining Corp., and Alphaland Corp.

Boerstar is beneficially owned by Roberto Ongpin and Eric Recto who represent the London-based Ashmore Group in the Philippines.

"Boerstar has presented its plan to cause the company to make several investments which they are presently evaluating and which will take effect after the foregoing subscription to and acquisition of the company's shares are completed," Atok said.

Since the deal was announced last month, share price of Atok soared to as high as P62 per share before closing at P58 per share on Thursday compared to only P1.94 last September 4.

Incorporated in September 1931, Atok initially engaged in mining activities.

But due to prolonged adverse economic conditions compounded by problems faced by the mining industry, the company redirected the its corporate primary purpose from mining to general investment.

At present, Atok is a holding company with investments in mining interests in Itogon, Benguet. It is also planning to invest in oil and gas assets.