Coal Asia Holdings Inc. is more than doubling its authorized capital stock and changing its corporate name to Tubig Pilipinas Holdings Inc. after being acquired by new shareholders.
The company said its board of directors approved an increase in its authorized capital stock to P13 billion from P5 billion following the sale of its 71.68-percent stake to Pure Energy Holdings Corp. and two water subsidiaries, Pure Water Corp and Quadwater Corp.
The board also approved the issuance of new shares to Pure Water Corp. and Quadwater Corp. In exchange, Coal Asia will receive a 100-percent stake in Tubig Pilipinas worth P6.64 billion. Tubig Pilipinas operates various water distribution projects across the Philippines.
As part of the transition, the board approved a shift in its primary business focus to include water distribution, bulk water supply, septage, sewage and related activities. The company will exit the coal mining sector by selling its unit, Titan Mining Energy Corp.
Titan Mining Energy Corp. holds a coal operating contract awarded by the Department of Energy, although it has yet to begin operations due to permitting issues.
In September, a group led by Pure Energy Holdings acquired a controlling stake in Coal Asia, paving the way for a potential backdoor listing of its water business.
Under the deal, Pure Energy Holdings acquired 4.99 billion shares representing 12.48 percent, while Pure Water Corp, and Quadwater Corp. each purchased 11.84 billion shares representing 29.60 percent. The total transaction is valued at P220.91 million.
Coal Asia and Pure Energy Holdings share interlocking directors, including Dexter Tiu, Eric Peter Roxas and Gertim Chuahiong.
