MRC Allied completes private placement for 21% stake

LISTED MRC Allied, Inc. has executed a subscription agreement for investors to acquire a 21% stake in the company for P315 million.

“On Jan. 16, the Board approved the subscription by the aforementioned individuals and the execution of the subscription agreement within a period of 10 days. Upon the request of the stockholders, the execution of the Subscription Agreement was done today (Feb. 2),” the company said in a disclosure on Tuesday.

In an earlier disclosure, MRC Allied said its board approved the issuance of 315 million new common shares priced at P1 each, as part of the company’s plan to raise up to P1 billion through private placement to strengthen its financial position and support expansion ventures.

According to the company, the proceeds from the issuance of unissued common shares will be used to settle advances and loans recorded in the company’s books as of the board approval date.

“The subscription price is payable upon execution of the subscription agreement,” it noted.

The private placement will be divided between Peregrino P. Fernandez and Kong Ming Yeung, two investors with backgrounds in local construction and property development.

Mr. Fernandez, a Filipino businessman, will acquire 215 million common shares, or a 14.34% stake. He owns Melekon Contractors Inc., which handles power generation, underground construction, mining, dredging, reclamation, and civil engineering projects. The company also invests in renewable energy, tertiary hospitals, and engineering consultancy.

Mr. Yeung, also a Filipino businessman, will acquire 100 million common shares for a 6.67% stake. He owns Supercity Capital Ventures Inc. and Metrosquare Holdings Inc., both focused on commercial real estate development and leasing. He manages a portfolio of office and commercial buildings across Metro Manila through Enterprise Metrosquare Management Services.

MRC Allied, originally incorporated in 1990 as Makilala Rubber Corp. for rubber processing and export, shifted focus in 1997 by selling its rubber business to subsidiary Makrubber Corp. to pursue real estate development.

In 2020, the Securities and Exchange Commission approved the change in the company’s primary purpose from real estate to a holding company.

At the local bourse on Tuesday, MRC Allied shares rose 2.41% to P0.85 apiece. — Alexandria Grace C. Magno