Alterra Capital Partners Inc., which will soon be renamed Philab Holdings Corp., plans to raise P4.7 billion in fresh capital through loans and share sale.
Alterra said in a disclosure to the stock exchange its board of directors authorized the company to enter into loan agreements with various lenders to borrow P437.1 million at an interest rate of 5 percent per annum.
Its board also approved the conduct of a follow-on offering consisting of 500 million shares which will raise P4.25 billion based on the stock’s current price of P8.55 per share.
The company assigned Philippine Commercial Capital Inc. as the lead underwriter for the share sale.
Alterra said its board authorized the company to file a registration statement with the Securities and Exchange Commission.
The company earlier increased its authorized capital stock to P2 billion from P20 million in preparation for the fund raising activity.
Alterra approved the acquisition of a 93.48-percent stake in Philab Industries Inc. for P860 million in December 2016, paving the way for the latter’s backdoor listing on the Philippine Stock Exchange.
Under PSE rules, a backdoor listing occurs “when a listed company acquires or merges or combines with an unlisted company, or when a listed company is acquired by, merged or combined with an unlisted company.”
Alterra acquired 351,750 shares in Philab Industries at P2,445 per share. Alterra’s acquisition came less than two months after Philab acquired a 67-percent stake in Alterra in October 2016.
Philab supplies math and science equipment to the Education Department, Health Department, Science and Technology Department and the National Institute of Health in UP Manila.