Posted on September 26, 2012 09:56:21 PM
COAL ASIA Holdings, Inc., which is targeting to be the fourth firm to list on the stock exchange this year, aims to supply coal to big-name firms in the next few years, the company’s financial adviser said yesterday.
Speaking to reporters after an investors’ briefing at Discovery Suites in Ortigas Center, Pasig City yesterday, Vicente L. Araña, Coal Asia’s financial adviser, said the company has been in talks with Global Business Power Corp., Aboitiz Power Corp., Manila Electric Co., TeaM Energy Corp., the Alcantara Group, FDC Utilities, Inc., DMCI Holdings, Inc., Ayala Corp., and San Miguel Corp. for the potential coal supply of these firms’ plants, while for cement, the company has been in discussions with Holcim Philippines, Inc., Cemex Philippines, and Lafarge Republic, Inc.
“Coal Asia believes that it is at the right place and the right time for its coal mine operation given the energy crisis in Mindanao, and owing to the growing demand for fuel to meet this region’s [sic] economic expansion and the resulting buildup of new generating power plants such as coal-fired units,” the company said in a statement yesterday.
Asked for a timetable for these deals, Mr. Araña said: “Within the year, ideally. At least one, hopefully.”
“We don’t know exactly what we will close; this still has to be negotiated,” Mr. Araña told reporters.
Coal Asia, an investment holding firm primarily engaged in coal and energy-related businesses, is the parent of Titan Mining and Energy Corp., which in turn owns coal operating contract (COC) 159 in Davao Oriental, as well as COCs 166 and 167 in Zamboanga Sibugay, according to a regulatory filing last July.
It claims to hold the country’s second-largest proven coal reserves with a combined 123 million metric tons (MMT) consisting of 71.1 MMT in Davao Oriental and 51.1 MMT in Zamboanga Sibugay, where commercial operations may commence in 2014 and 2015, respectively.
In addition to possible supply deals, Coal Asia has also received proposals from two independent power producers for the development of a mine-mouth power plant project in Davao Oriental, and from established mine operators for the joint development of the Zamboanga Sibugay project, Mr. Araña said.
The company, however, was not yet in the position to provide details on these proposals, he added.
Last Sept. 14, the Philippine Stock Exchange approved Coal Asia’s initial public offering, which is set to take place Oct. 9-15, with listing on the stock exchange’s first board targeted for Oct. 23.
Coal Asia said it aims to raise P726,868,750 in net proceeds from an offer of 800 million common shares priced at P1 apiece, equivalent to 20% of total issued and outstanding capital stock.
Of these proceeds, P537 million will go to the company’s Davao Oriental project, while P63 million will be allotted for those in Zamboanga Sibugay. The balance of P126.869 million will be earmarked for working capital purposes, the company said in a regulatory filing.
The funds will support the company’s sub-surface exploration, construction of mine and camp site structures, port and stockyard facilities, supplemental infrastructure for power and water, treatment plants, and an in-house laboratory, among others.
Brokerage Abacus Capital and Investment Corp. will serve as issue manager and underwriter for the firm’s planned public offering, the document read.
Coal Asia will be the fourth firm to go public this year following conglomerate GT Capital Holdings, Inc., which listed in April, as well as Gotianun-led East West Banking Corp. and feed supplier Calata Corp., which listed in May.
For the first half, Coal Asia reported a net income of P2.03 million, as well as P13.41 million in sales and cost of sales totaling P6.73 million. -- F. J. G. de la Fuente source
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