The board of listed MRC Allied Inc. approved the conduct of a P1-billion private placement to finance the company’s diversification into power projects.
MRC Allied said in a disclosure to the stock exchange its board approved the private placement of 1,904,761,905 common shares from the unissued and unsubscribed authorized capital stock and the issue price of P0.525 per share.
The board earlier approved a private placement of up to P1 billion worth of common shares at a minimum issue price equivalent to the 30-day average rate from transaction date and downpayment of 50 percent of the issue price upon signing of the term sheet with the 50-percent balance payable within 30 days from downpayment.
MRC Allied executed a memorandum of understanding with local company Merge Energy and Environment Corp. or MEEC for possible acquisition opportunities.
“The purpose of the MOU is to confirm that both parties have an interest in developing renewable energy projects in the properties identified by MEEC as target or locations,” MRC Allied said.
MEEC is a domestic private corporation engaged in the business of exploration and development of renewable energy resources such as but not limited to biomass, geothermal, oil and gas.
“The MOU is a preliminary agreement between the parties. It is basically exploratory in nature and it will allow us to look into the projects of MEEC,” MRC Allied president Gladys Nalda said.
The MOU involves the conduct of due diligence within 60 days from the MOU signing.
“Within the 60-day due diligence period we will access their data re RE projects and we will see if a partnership will be possible so we proceed with a more definitive agreement,” Nalda said.
MEEC has existing biomass and solar project that MTC can look into, she said.
MRC Allied recently announced plans to develop at least 1,000 megawatts of clean and renewable energy in the next five years that will require investments of about P80 billion to P100 billion.
“In line with our vision to be one of the major players in the Philippine power industry, we plan to develop at least 1,000 MW of clean and renewable energy by 2020. For this year, an aggregate of 160 MW solar capacity is in our pipeline” Nalda said earlier.