Story tools

Send story

Print story

Corporate News

Posted on 09:56 PM, December 28, 2010

LISTED HOLDING firm South China Resources, Inc. has acquired a minority stake in a consortium that bought Atlantic Gulf and Pacific Co. of Manila, Inc. (AGP) from the Consunjis.

Atlantic Gulf and Pacific Co. of Manila, Inc. has a number of overseas contracts, such as the Goro Nickel Refinery Project in New Caledonia. — www.agp.com

“On Dec. 21, South China Resources subscribed to, and subsequently paid for, 26.09 million Series A preferred shares of AGP International Holdings, Inc. at a purchase price of $0.23 per share or a total amount of $6 million,� the company said in a disclosure yesterday.

“South China Resources’ subscription of AGP International shares is purely for investment purposes,� it added.

On Dec. 23, Consunji-led DMCI Holdings, Inc. announced that it had sold general contractor and steel fabricating firm AGP to local and foreign investors for P1.75 billion. The disclosure came two years after AGP was put on the auction block.

AGP International, a British Virgin Islands company incorporated in November by Icaza, Gonzales-Ruiz Aleman (BVI) Trust, Ltd., has a 40% stake in AGP Philippines Holdings I, Inc., which had acquired all shares of DMCI Holdings in AGP.

“By investing in AGP International, South China Resources believes that it will be benefited by a return of the investment of AGP Philippines from AGP,� the listed holding firm said.

AGP International has one billion common shares and 400 million Series A Preferred shares.

In last week’s disclosure, DMCI Holdings said it held 98.19% of AGP.

AGP’s buyers include Kuwaiti fund KCIC and “several key personalities with a wealth of experience in the oil and gas industry and international finance,� DMCI Holdings said.

KCIC is a five-year-old investment company regulated by the Central Bank of Kuwait. The Kuwait Stock Exchange-listed firm is partly owned by the Kuwait Investment Authority, Kuwait’s sovereign wealth fund.

In April, South China Resources said it would be joining the renewable energy bandwagon by investing in geothermal, hydropower, and solar energy.

The company holds a 15% interest in Service Contract (SC) No. 60, where an oil well is expected to be drilled. Shell Philippines Exploration B.V. is the operator of SC No. 60 with 55% interest, while Kuwait Foreign Petroleum Co. holds 30%.

South China Resources was originally listed as an oil and gas exploration, development and production company in 1992, but became a holding company in 2003 to engage in other businesses, such as finance.

South China Resources also has stakes in exploration areas covered by SC No. 41 in Sulu Sea (1.09%) and SC No. 71 off Cuyo Island in Palawan (15%).

Shares in the holding firm, which turned around to a P1.41-million net income in the third quarter from a P3.25-million net loss in the previous year, fell by 1.99% or P0.03 to P1.48 each yesterday. — Neil Jerome C. Morales

Back to top