Ongpin-Ashmore seals deal for Atok-Big Wedge

MANILA, Philippines - The group of businessman Roberto V. Ongpin and UK-based investment firm Ashmore Management has sealed a deal to acquire 58 percent of previously inactive mining firm Atok-Big Wedge Co. Inc.

In a disclosure to the Philippine Stock Exchange, Atok said it has entered into a deed of subscription with Boerstar with respect to a total of 34.78 million shares with a par value of P1, or a total consideration of P34.78 million.

Boerstar is a company beneficially owned by the Ongpin-Ashmore Group. 

Boerstar is expected to raise its shareholdings in Atok to at least 80 percent as existing minority shareholders of the shell mining company have agreed to tender a minimum of 13.4 million shares. 

Under the tender offer rule, any investor who buys at least 35 percent of a listed company must offer the same terms to other shareholders of the target firm.

The acquisition of Atok will be the latest addition to the Ongpin-Ashmore Group’s investment portfolio in the Philippines which includes Philex Mining Corp., PhilWeb Corp, ISM Communications Corp. and San Miguel Corp.

With its entry, Boerstar intends to beef up Atok’s mining assets as well as invest in oil and gas resources.

Organized in September 1931, Atok is a holding company primarily engaged in mining, with gold as its major product and silver as a by-product.

Due to prolonged adverse economic conditions compounded by problems faced by the mining industry, the board and stockholders of Atok redirected the company’s corporate primary purpose from mining to general investment, and listed among its secondary purposes, mining, real estate management and development, manufacturing, food products processing, and lending and borrowing money.

Aside from Atok, the Ongpin-Ashmore Group is also acquiring 66 percent of listed Macondray Plastics Inc. for P218.78 million. It has been building up its portfolio through acquisitions.