NATIONAL Book Store Inc., a company controlled by the Ramos family, has increased its stake in Anglo Philippine Holdings Corp. (APO), proceeds of which will be used to settle outstanding obligations.
APO, also controlled by the Ramos family, said in its disclosure that National Book Store subscribed to about 228.34 million shares of APO at a price of P1.8516 per share for a total amount of P422.79 million.
The retail chain paid 5 percent of the subscription, or P21.14 million.
“The balance is to be payable upon call by the board of directors from time to time,” the agreement of the two companies states.
“The company will undertake an investment-evaluation process to determine where to use the proceeds.
The final investment decision of the company will then be subject to due diligence prior to implementation. In general, the company intends to use the proceeds to settle outstanding loan obligations, acquire dividend-yielding securities, and fund the company’s share in future property-development projects,” APO said.
As a result of the transaction, National Book Store’s stake in APO will increase to 44.96 percent from 37.41 percent, while shares of Alakor Corp., another Ramos company, will be reduced to 27.47 percent from 31.24 percent. Alakor, with National Book Store as its designated affiliate, in March decided to make a private placement in APO of up to 2.3 billion shares at a price of P1.8516.
APO has investments in United Paragon Mining Corp., Atlas Consolidated Mining and Development Corp. The Philodrill Corp.,North Triangle Depot Commercial Corp., MRT Development Corp., MRT Holdings Inc., Brightnote Asset Corp. and Filipinas Energy Corp.
In 2012 it assumed full ownership of Vulcan Industrial and Mining Corp., a company planned to be used for the backdoor listing of National Book Store.