In line with this, the Malaysian group plans to infuse P125.4 million in fresh capital to a newly incorporated local affiliate Berjaya Auto Philippines Inc. (BAP), thus re-capitalizing the latter ahead of the prospective deal with Mazda.
In a disclosure to the Philippine Stock Exchange on Monday, the publicly listed Berjaya Philippines said BAP, where it has kept a 40 percent interest, received a proposal from the Bermaz Motor International Ltd. (BMIL) to subscribe to new common shares in BAP.
The infusion will increase BAP’s capital and give BMIL 60 percent control of the enlarged share capital in exchange for the P125.4-million fresh subscription.
BMIL is a wholly owned subsidiary of the Bermaz Motor Sdn Bhd, which is in turn 80-percent owned by the Berjaya Group Berhad, a fully owned unit of Berjaya Corp. Berhad.
The plan is for BMIL to subscribe to about 125.4 million new common shares in BAP at P1 each in order to acquire 60 percent of BAP.
BAP was incorporated last August 10, with an authorized capital stock of P10 million divided into 10 million shares. While Berjaya Philippines owns 40 percent of this auto unit, 60 percent is held by Bagan Resources Pte. Inc.
This auto unit has yet to commence business operations.
In response to the BMIL’s offer, the disclosure said BAP would propose to its shareholders to beef up its authorized capital stock to P220 million and its issued capital to P209 million divided into 209 million shares.
Berjaya Philippines plans to subscribe to additional shares in BAP as well in order to retain at least 30 percent of the latter’s enlarged capital.