The Market Monitor Minding the Nation's Business
Listed conglomerate Roxas Holdings Inc. (RHI) said it will fix at a 10-percent discount of the average price of its common shares in the past 90 days the indicative price in its stock rights offer.
RHI held last April 4 its executive committee (ExCom) regular meeting to decide on the indicative offer price of stock rights offering of 265,968,916 common shares to all shareholders.
The company plans to spend the proceeds from the offer to fund the capital expenditure of the group as well as to partially meet short-term obligations of its wholly owned unit Roxas Pacific Bioenergy Corp.
Likewise, RHI reported that it secured a certification of exempt transaction from the Securities and Exchange Commission in relation to the offer.In February this year, RHI’s board approved a rights offer on common share holders of RHI.
RHI disclosed earlier that it has been undergoing plant improvements in its factories and spending P1.4 billion in capital expenditure for the current crop year aimed at addressing operational challenges.
The company is the largest integrated sugar business in the Philippines. It fully manages Central Azucarera Don Pedro Inc. in Nasugbu, Batangas, and Central Azucarera de la Carlota Inc. and Roxol Bioenergy Corporation in La Carlota, Negros Occidental, and San Carlos Bioenergy Inc.
For the first quarter of crop year ending September 2016, RHI posted net loss of P125 million compared to a profit of P9 million in the same period last year. The net loss, which is not unusual for first quarter results of the firm was also attributed due to insufficient cane supply and late startup in its Batangas plant. RIZA LOZADA