Calata sets capital hike, eyes new investors

Agribusiness firm Calata Corp. is more than doubling its authorized capital as it prepares for the possible entry of new investors.

In a disclosure, the company—which is being probed by the Securities and Exchange Commission (SEC) for alleged stock price manipulation—said it would increase its capital to P2 billion, up from the current P845 million.

Likewise, Calata said its board also approved the conversion of its P55 million in advances to Agri Phil Corp. to common shares in the said company.

The company also plans to purchase all issued and outstanding shares of stock in Agri Phil at a par value of P100 per share for a total amount of P9.5 million.

And, as previously announced, Calata said it approved the payment using real estate by Avestha Holding Corp. as settlement to the latter’s obligations to the former.

The said transactions were approved at the company’s first shareholders’ meeting as a publicly listed firm on August 31. The company appointed as board members Joseph H. Calata, Benison B. DeTorres, Jaime C. Laya, Baltazar Endriga and Jose Zaide.

George A. Nava and Conrad C. Zablan were appointed independent directors.

Also approved at the meeting was a stock option plan for up to 50 million common shares in the firm, “including subsequent issuances and amendments thereto under such terms and conditions as may be determined by the board of directors or any of its duly authorized representatives.”

Calata, which runs a chain of retail agriculture supply stores across Luzon, listed on the stock exchange in May. It was the third firm to hold an initial public offering this year, after GT Capital Holdings and EastWest Bank.

Shares in Calata closed at P5.58 each, significantly below its 52-week high of P24 per share. The closing share price on Monday, lower by 1.23 percent from Friday’s close, was also below the firm’s IPO price of P7.50 each.—Paolo G. Montecillo