The Ongpin group is pouring at least P500 million into its recent acquisition: Atok-Big Wedge Company.
In a disclosure to the stock exchange on Friday, Atok-Big Wedge said its board has approved the increase of the company’s authorized capital stock to P10 billion from P60 million.
The increase in capital will be funded by a private placement of the group led by Roberto Ongpin. The private placement is worth P500 million. The terms of the private placement was not announced.
The private placement was on top of the P35 million that the Ongpin group paid to acquire around 80% of the mining firm.
With the entry of the Roberto Ongpin group into Atok-Big Wedge Company, the former penny stock is reverting back into a mainly mining, oil, gas, and natural resource development company.
Before Ongpin, a former Marcos crony, sealed his entry into Atok-Big Wedge last October, the almost 80-year old firm has set mining activities on the side as prolonged adverse economic conditions took its toll. It had engaged into general investment activities in the recent past.
Since the deal was announced in September, the share price of Atok had been soaring. From only P1.94 last September 4, it closed at P92 last December 11—a whopping 4642% increase.
The board has also been re-populated with Ongpin and his allies. The current directors are now the following:
Roberto V. Ongpin : Chairman of the Board
Eric O. Recto : Vice Chairman
Walter W. Brown : President & Director
Mario A. Oreta : Vice President & Director
Dennis O. Valdes : Treasurer & Director
Delfin J. Wenceslao, Jr. : Director
Victor R. Kalaw : Director
Mario J. Locsin : Independent Director
Reynaldo G. David : Independent Director
Rodolfo Ma. A. Ponferrada : Corporate Secretary