Close  

Roxas Holdings sets stock rights offering to raise P1B

/ 02:03 AM April 19, 2016

SUGAR firm Roxas Holdings Inc., now majority owned by the First Pacific Co. Ltd., has firmed up a stock rights offering that can raise over P1 billion in fresh capital to fund the company’s expansion program.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, RHI said its board had approved an offering of 265.97 million in new common shares to its existing shareholders at an entitlement ratio of one share for every 4.33 shares held. The offer price would be computed based on a 10-percent discount to the 90-day volume-weighted average price of RHI’s common shares listed on the PSE ending on April 27 this year.

ADVERTISEMENT

Based on this indication, the offering can raise over P1 billion.

The offer period is targeted to start on May 12 through May 18 this year.

FEATURED STORIES

Net proceeds from the offer would be used by RHI to partially pay the loan obligations of Roxas Pacific Bioenergy Corp. (RPBC), a wholly-owned subsidiary. The loan was contracted by RPBC to partially finance its acquisition of San Carlos Bioenergy Inc. in April 2015.

The rest of the proceeds would be used to acquire an additional 8-megawatt steam turbine generator for sugar milling and refining. It would also be used to finance the installation of a heavy duty pressure feeder to the sugar plant milling equipment.

This year, RHI has set aside P1.4 billion in capital spending, double the budget previously targeted. Of this amount, P600 million would be used for the ethanol business and P800 million for the sugar business.

RHI’s focus was to improve operational performance, cost efficiency and cane supply, company officials earlier said.

Controlling shareholder First Pacific, led by Filipino businessman Manuel V. Pangilinan, earlier raised P2.16 billion from the sale of a 14.8 percent stake in RHI’s rival sugar miller and refiner, Victorias Milling Co.

ADVERTISEMENT
Subscribe to Inquirer Business Newsletter
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, economy, News, Roxas Holdings, sugar industry
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.