Greenergy eyes more RE projects, acquisitions

Manila Times.net
Published : Wednesday, March 07, 2012 00:00 Written by : Krista Angela M. Montealegre, Reporter


Greenergy Holdings Inc. plans to spend bulk of the proceeds from a private investment by Earthright Holdings Inc., which is set to debut in the Australian Securities Exchange (ASX) later this year, to finance possible acquisitions and investments in renewable energy projects.


In a disclosure to the Philippine Stock Exchange, Greenergy said that Earthright, the private holding firm of Greenergy president and chief executive Antonio Tiu, will acquire 26.49 percent of the renewable company following a P250-million private placement investment.


Earthright will be the single largest shareholder of Greenergy after the transaction.


“Earthright will be [the] holding company to own [AgrinNurture Inc.], Greenergy and my microfinance bank that lend to farmers then [it] will list at the ASX this year,” Tiu said in a text message.


About P237.50 million of the proceeds will be earmarked to augment the funding requirements of its operations and possible acquisition of biomass plants and investments in renewable energy projects.
The remaining P12.50 million will be used for general corporate purposes.


Earthright has made an initial payment of P62.50 million, equivalent to a quarter of the value consideration, when the subscription agreement was executed last month.


Last month, Greenergy obtained board approval to sell 25 billion common shares to Earthright at a par value of P0.01 apiece, which will be taken out of the capital stock hike from P1 billion to P2 billion, subject to the approval of the Securities and Exchange Commission.


The Greenergy board also approved the listing of the primary shares, which Earthright would
subscribe to, in line with the consolidation of Tiu’s assets in the latter firm.


Formerly MUSX Corp., the semiconductor firm was renamed Greenergy Holdings to reflect the company’s new business direction after Tiu acquired the former.


Greenergy shares finished at P0.014 each on Tuesday, up 7.69 percent from the previous close of P0.013 apiece.