DMCI Holdings Inc. said it plans to defer the proposed consolidation of Semirara Mining and Power Corp. and DMCI Mining over valuation issue.
DMCI president and chief executive Isidro Consunji said in a recent investor briefing sponsored by the Philippine Stock Exchange that at least 90 percent of mining assets of DMCI Mining were not issued necessary permits.
“We have an issue of valuation because a lot of assets of DMCI Mining are not totally permitted. Maybe 90 percent of DMCI mining assets are not permitted. So it is kind of difficult to put a valuation,” Consunji said.
“If it is not permitted, then the buying shareholders will be in for a loss, but if it is fully permitted and the assets were sold at a price below the assets for fully permitted, then the selling shareholders will be aggrieved. So we might want to defer until we have finality on permitting process,” he said.
Consunji said in May the company was studying the possibly of transferring or consolidating DMCI Mining into Semirara to create shareholder value for both the stockholders of the two companies.