Business World Online
Posted on May 22, 2013 10:34:26 PM
By Claire-Ann M. C. Feliciano, ReporterGREENERGY Holdings, Inc. is set to acquire a majority stake in a China-based firm, marking its first venture abroad, for around P260 million, a top company official said in a phone interview yesterday.
Greenergy President and Chief Executive Officer Antonio L. Tiu said the company will acquire a 60% interest in Zhongzhe Renewable Energy Corp., which owns a four-megawatt (MW) biomass power plant in Heilongjiang, China.
“We already agreed to acquire the company, subject to due diligence. We already signed a term sheet for a 60% interest,” Mr. Tiu said, confirming, “Yes, it’s the first” venture of his company beyond Philippine shores.
He added that the company expects to finalize the deal “within 90 days.”
The official said that capacity of the biomass facility could be expanded to 15 MW.
Mr. Tiu said the project in China, should the deal proceed, will be Greenergy’s second renewable energy project after its biomass power plant in Negros Occidental. The company -- through San Carlos BioPower, Inc. -- is building an 18-MW biomass power plant in the province which is targeted to be completed by December next year.
Mr. Tiu said the company decided to acquire a stake in the foreign firm because Greenergy has “been aggressive in expanding” and the company saw “an open opportunity.”
He said the planned acquisition will cost “more or less P260 million” adding that the deal will involve “cash infusion, issuance of shares and assumption of the company’s liabilities.”
He said definitive details will be disclosed when the deal is sealed.
Asked on funding, Mr. Tiu said Greenergy plans to issue 17.6 billion common shares equivalent to P176 million, adding “this will be added to the previous issuance of shares of the company, so its almost full already.”
Last January, Greenergy raised P85 million from a private placement of 8.5 billion primary common shares, under subscription agreements entered into with a certain Jerry Yu and a British Virgin Islands- based company, Three Star Capital Ltd.
Greenergy said in November last year that it had secured its board’s approval to invest in companies and acquire assets related to food and agriculture, banking and finance, real estate development and construction, renewable energy, technology, information technology and retail sector.
The company had said planned investments or acquisitions will be backed by fund raising like issuance of primary shares, sale of secondary shares and debt financing.
Greenergy is a holding company which engages in development of renewable energy resources.
Formerly semiconductor designer and maker MUSX Corp., it secured the approval of the Securities and Exchange Commission on Dec. 15, 2008 to change its primary purpose to that of a holding parent company. It began diversification moves in the latter part of 2010.
Greenergy saw its net loss more than double to P11.929 million in the first quarter from P5.347 million the previous year, as operating expenses surged to P13.272 million from P5.347 million, according to unaudited consolidated statement of comprehensive income contained in a report attached to a disclosure last May 20.
“Revenue during the period is composed mostly of interest income from funds deposited with the banks,” the report read, adding it did not have any sales revenue in the first three months of the year.
The company’s shares ended yesterday’s trades at 1.7 centavos apiece, unchanged from Tuesday. source
“We already agreed to acquire the company, subject to due diligence. We already signed a term sheet for a 60% interest,” Mr. Tiu said, confirming, “Yes, it’s the first” venture of his company beyond Philippine shores.
He added that the company expects to finalize the deal “within 90 days.”
The official said that capacity of the biomass facility could be expanded to 15 MW.
Mr. Tiu said the project in China, should the deal proceed, will be Greenergy’s second renewable energy project after its biomass power plant in Negros Occidental. The company -- through San Carlos BioPower, Inc. -- is building an 18-MW biomass power plant in the province which is targeted to be completed by December next year.
Mr. Tiu said the company decided to acquire a stake in the foreign firm because Greenergy has “been aggressive in expanding” and the company saw “an open opportunity.”
He said the planned acquisition will cost “more or less P260 million” adding that the deal will involve “cash infusion, issuance of shares and assumption of the company’s liabilities.”
He said definitive details will be disclosed when the deal is sealed.
Asked on funding, Mr. Tiu said Greenergy plans to issue 17.6 billion common shares equivalent to P176 million, adding “this will be added to the previous issuance of shares of the company, so its almost full already.”
Last January, Greenergy raised P85 million from a private placement of 8.5 billion primary common shares, under subscription agreements entered into with a certain Jerry Yu and a British Virgin Islands- based company, Three Star Capital Ltd.
Greenergy said in November last year that it had secured its board’s approval to invest in companies and acquire assets related to food and agriculture, banking and finance, real estate development and construction, renewable energy, technology, information technology and retail sector.
The company had said planned investments or acquisitions will be backed by fund raising like issuance of primary shares, sale of secondary shares and debt financing.
Greenergy is a holding company which engages in development of renewable energy resources.
Formerly semiconductor designer and maker MUSX Corp., it secured the approval of the Securities and Exchange Commission on Dec. 15, 2008 to change its primary purpose to that of a holding parent company. It began diversification moves in the latter part of 2010.
Greenergy saw its net loss more than double to P11.929 million in the first quarter from P5.347 million the previous year, as operating expenses surged to P13.272 million from P5.347 million, according to unaudited consolidated statement of comprehensive income contained in a report attached to a disclosure last May 20.
“Revenue during the period is composed mostly of interest income from funds deposited with the banks,” the report read, adding it did not have any sales revenue in the first three months of the year.
The company’s shares ended yesterday’s trades at 1.7 centavos apiece, unchanged from Tuesday. source
No comments:
Post a Comment