MRC Allied, Inc. said Monday that its board had unanimously approved a private placement of unissued common shares that is expected to raise P315 million in fresh capital.
In a disclosure, the company said the board approved the offering of 315 million unissued common shares at P1.00 apiece to two investors.
Payment for the shares will be made in cash, with full settlement required upon signing of the subscription agreements within 10 days from the approval date.
The newly issued shares will be subject to a 180-day lock-up period and all taxes, fees, and expenses associated with the subscription and issuance will be borne by the company.
MRC said the private placement was part of a previously approved program to raise up to P1 billion, with the proceeds earmarked for the payment of advances and loans.
It said the shares would be subscribed by individual investors acting in their own capacities, with Peregrino P. Fernandez subscribing to shares totaling P215 million and Kong Ming Yeung taking up shares totaling P100 million.
The board also authorized MRC Allied President and CEO Augusto Cosio Jr. to sign and execute the subscription agreements and all related documents on behalf of the company.
The agreements are expected to be finalized within 10 days from the board’s approval.
Trading in MRC Allied shares was halted for an hour on Monday morning by the PSE in light of the disclosure. They closed unchanged at P0.86 each.
