Mic Holdings secures SEC okay for proposed corporate changes

MANILA, Philippines - Romero-led Mic Holdings has secured regulatory approval for a number of major amendments in its articles of incorporation, setting the stage for the company’s multi-billion-peso expansion plan.

Mic chairman and president Michael Romero told The STAR that the Securities and Exchange Commission (SEC) has approved the company’s increase in authorized capital from P100 million to P2.1 billion, reduction in par value from P100 per share to P1 per share, and increase in the number of board of directors from seven to nine.

He also said they have yet to call a board meeting to finalize the implementation of the amendments pertaining to the proposed change in corporate name from Mic Holdings to Globalport Terminals Inc., and the addition to the secondary business purposes, both of which have been deferred.

The earlier proposed addition in the company’s secondary purpose includes owning, investing, managing, operating, maintaining, and developing port facilities, including other maritime activities supportive of port operations and shipping.

Plans are afoot for Romero’s investment company, Sultan 900 Capital, which owns around 97 percent of Mic, to acquire Romero’s port businesses, which include Harbour Centre and a majority stake in the company that operates and manages Manila North Harbor.

Sultan last August acquired 95.22 percent of Mic from Ventcap, a company identified with businessman Antonio “Tonyboy” Cojuangco, for P175 million.

Earlier, Mic also announced that Sultan has fully paid its subscription to 457,878 unissued capital stock of the former which subscription has been approved by Mic’s shareholders and board of directors.

Last Sept. 28, Mic’s shareholders gave their go-signal to the increase in Mic’s authorized capital stock from P100 million to P2.6 billion to be implemented in two phases: initially at P2.1 billion and then to P2.6 billion within a period of six months from approval by the SEC of the increase in authorized capital stock to P2.1 billion or sooner as the board of directors may determine; as well as to the change in the par value from P100 to P1 per share.

Romero told The STAR that the increase in authorized capital will allow Sultan to infuse additional funds into the company.

Earlier, he revealed that Mic Holdings will be asking the Philippine Stock Exchange (PSE) that it be allowed to postpone its compliance with the minimum 10 percent public float requirement until the third or fourth quarter of next year.

Romero also said that they expect to completely turn around the company’s performance very soon. “Once the additional capitalization of about P2.5 billion has been pumped in, Mic could expand more aggressively and income-generating activities would augment the company’s expansion,” he said.

The company is looking at acquiring at least seven domestic ports and acquiring and/or operating a number of foreign ports. Mic is participating in biddings to operate international ports, such as those in Guam, Vietnam, Russia, Sri Lanka and Indonesia.

Mic also plans to acquire new companies, which include those that are into ports, information technology, dredging and logistics.

The company will likewise soon undergo a corporate restructuring, which may include acquiring existing port-related businesses of the Harbour Center Group, Romero revealed.

Mic plans to raise at least $200 million starting second or third quarter next year to acquire and operate both domestic and foreign-based seaports.