TKC Metal Corp., the steel manufacturing unit of the Tiu family, is disposing of all core assets as it plans to explore new investment opportunities in the technology businesses and broadband internet.
TKC said in a disclosure to the stock exchange Tuesday the board approved the sale of all non-performing assets at terms and conditions to be negotiated and finalized.
The proposed sale will include the stake in major subsidiaries, namely Billions Steel International Ltd. and its unit, Zhangzhou Stronghold Steel Works Co. Ltd (ZZ Strongholder), Treasure Steelworks Corp. and (TSC) Campanilla Mineral Resources Corp.,
The company said it would conduct a special stockholders’ meeting on December 30, 2021 to obtain shareholders’ approval of the planned action.
The Philippine Stock Exchange implemented a one-day trading suspension on the trading of TKC shares to give investors ample time to digest the material development.
ZZ Stronghold manufactures and distributes various types of steel pipe products in China. It started repairing in March the second phase of plant upgrade and teamed up with third-party SK Group over fabrication, coating and galvanizing activities set to be in operations in 2022.
TSC, on the other hand, has suspended its production of steel billets in Iligan City since 2013.
TCK since 2020 has been negotiating with third parties on potential business ventures based on a recent filing with corporate regulators.
TKC said it plans to explore new investment opportunities, especially in technology businesses and broadband internet, to diversify its portfolio and generate revenue to sustain group’s operations and meet maturing obligations.
“The project aims to bring seamless connectivity using wired, wireless and VSAT capabilities for all the cities, municipalities and all the networking communities in the country,” TKC said.
“This will make internet universally accessible for everyone in the Philippines. The service extends from the basic connectivity on-wards to e-learning, e-health, security services, e-commerce and all the opportunities the internet brings,” it added.
TKC registered a net loss of P113 million in the first nine months of the year, slightly better compared to the net loss of P124 million in the same period last year.