ASIABEST Group International Inc. (ABG) on Monday it would seek shareholder approval next month to fold in two operating companies valued at up to P6.7 billion as it moves forward with plans to expand its infrastructure and property businesses.
It said the proposal, to be presented at the company’s annual stockholders’ meeting on August 11, would cover the planned acquisition of Industry Movers Corp. (IMC) and Kabalayan Housing Corp. (KHC), or their underlying assets, in exchange for newly issued ABG shares.
Industry Movers is expected to be valued at between P3.9 billion and P5.5 billion, equivalent to 156 million to 220 million ABG shares, while valuation for Kabayan Housing was seen at between P800 million and P1.2 billion, equivalent to 32 million to 48 million shares.
The transactions remain subject to independent third-party valuation and regulatory approvals.
“The proposed vend-in represents another important milestone in ABG’s transformation,” investor relations officer Jan Michael Lim said.
“We are bringing together complementary businesses under the ABG platform while further creating a strong organization with the capabilities to participate across multiple segments of the infrastructure and property value chain,” he added.
Industry Movers operates a nationwide maritime logistics business, offering services that include bulk and rolling cargo transport, dredging works, crane barge and pile driving operations, cargo handling, towing and tug-assist services and general cargo delivery.
Kabalayan Housing, meanwhile, is expected to serve as ABG’s strategic land bank for future integrated housing and modular construction projects through partnerships with local government units, private developers and landowners.
The proposed transactions are intended to complement the operations of ABG Modular Development Corp., the company’s wholly owned subsidiary engaged in prefabricated concrete modular structures for infrastructure, housing and other construction projects.
The integration of Industry Movers, Kabalayan Housing and ABG Modular is expected to strengthen Asiabest’s presence across maritime logistics, land development, modular construction and infrastructure support services, the company said.
It added that shareholders would also be asked to vote on a proposed increase in its authorized capital stock to support the planned asset infusions and future expansion initiatives.
Asiabest shares added P0.50, or 1.54 percent, to close at P32.90 each on Monday.
