Benguet Mining owner expands portfolio with P5 billion acquisition of Leyte-based magnetite producer
Bilyonaryo.com | May 22, 2024
Bright Kindle Resources & Investments Inc. (BKR) is acquiring Strong Built (Mining) Development Corporation, a Leyte-based magnetite producer, for P5 billion.
Strong Built Mining will be BKR group’s third mining firm listed on the stock exchange, following Benguet Corp. and Marcventures.
In a stock-exchange filing, BKR announced that its subsidiary, Brightstar Holdings and Development Inc. (BHDI), would issue new common shares and assets valued up to P5 billion in exchange for 100% ownership of Strong Built.
The Philippine Stock Exchange (PSE) suspended trading in BKR shares on Wednesday due to materiality of the information disclosed and pending submission of additional details regarding the acquisition.
The PSE did not specify when the trading suspension would be lifted, but assured the public of further updates.
Based on 2021 data, Strong Built produced an estimated P88.28 million worth of chromite concentrate and employed 436 people.
BKR also disclosed BHDI’s increase in its authorized capital to P7 billion, divided into 7 billion common shares with a par value of 10 centavos per share.
However, BKR is awaiting approval from the Securities and Exchange Commission on the valuation of the property involved in a previous share swap, where BKR’s condominium properties were exchanged for BHDI shares.
The declared property dividend totals P50.95 million, corresponding to an entitlement ratio of 1 BHDI common share for every three common shares of BKR.
Source: Bilyonaryo.com
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