Zap Cove Development Corp., a Laguna-based company, is buying more than P3 billion worth of shares in Vulcan Industrial and Mining Corp. of the Ramos family.
Vulcan said in a disclosure to the stock exchange its board approved the assignment of subscription rights over 486.055 million partially paid shares in the company by National Bookstore Inc. in favor of Zap Cove Development.
Vulcan said it also approved the additional subscription by Zap Cove of up to 2.55 billion shares out of the authorized but unsubscribed capital stock of the company at P1 per share. National Bookstore of the Ramos family is the majority shareholder of Vulcan with 58.6-percent stake.
Vulcan also approved the company’s move to cease to exit the business of mining, oil, petroleum, industry development and mineral processing.
It also approved to amend its primary and secondary purpose from mining to a holding company and such other purposes that the management deems fit in the best interest of the company.
These moves as well as other measures approved by the board of directors of Vulcan Wednesday boosted market speculation that the company could be a subject of backdoor listing.
Vulcan also approved to write off all deferred exploration costs and other assets for accounting and legal purposes and to sell any or al of its remaining assets subject to the terms and conditions to be set by the management.
The company asked for trading suspension of its shares as its board of directors will take up proposals that may materially affect the future business direction of the company.
“The proposals that are expected to be taken up during the board meeting may affect market activity with respect to listed Vulcan securities and lead to speculation prior to board action on the proposals. The trading suspension will enable the company to provide its shareholders and the investing public with equal opportunity to examine the details of the results of the board meeting, and fully appraise their investment position in Vulcan shares in light of such results,” the company said.
Share price of Vulcan has been going up since June on rumors that the company is subject to backdoor listing by Converge ICT Solutions Inc., a company owned by Pampanga-based businessman Dennis Uy, who is interested in joining the race for the third telco slot.
From a 52-week low of P0.60 per share, share price of Vulcan has zoomed to a 52-week high of P2.95 on Oct. 23. Prior to trading suspension, share price of Vulcan was trading at P2.49.