A Brown Company Inc., the holding company of businessman Walter Brown, said Friday it is doubling the authorized capital stock to P4 billion in preparation for a possible fund raising activity.
A. Brown said in a disclosure to the stock exchange its board of directors approved the increase in the company’s authorized capital stock to P4 billion from P2 billion and the declaration of a 20-percent stock dividend.
“Please be advised that the corporation’s board of directors, in a meeting held today, authorized the conduct of a capital raising exercise,” A. Brown said.
“For this purpose, the board of directors also approved the proposal to increase the corporation’s authorized capital stock, out of which increase, together with the other authorized but unissued capital stock of the corporation, the shares needed for the capital raising exercise will be issued,” it said.
A. Brown earlier lined up P17 billion worth of projects in energy and infrastructure, real estate and agribusiness ventures over the next five years.
Bulk of these projects with estimated cost of P14.5 billion will go to the energy and infrastructure space, including coal, bunker, hydro/renewables and bulk water as well as mineral and oil and gas explorations.
Another P1.3 billion will be allocated for real estate development while close to P1 billion will go to agribusiness, which includes palm oil plantation, milling and refinery.
Financing for the projects will come from a combination of self-generated equity, joint ventures and partnerships and project financing, according to the company.
A Brown subsidiary AB Bulk Water Co. held the groundbreaking last month for the P500-million bulk water supply project in Opol, Misamis Oriental.
AB Bulk Water will undertake the bulk water supply project in partnership with the municipal government of Opol under the public-private-partnership scheme.
A Brown, a company listed on the Philippine Stock Exchange, is the holding company for the various businesses of Brown and family, with strategic interests in agribusiness (palm oil plantation and milling), power generation (coal, diesel, hydro and renewables) and resources (precious metals, oil and gas exploration).
The company has focused on business interests in Mindanao, although its power and real estate segments have investments in other regions.