ABG seeks approval for up to P6.7-B asset acquisitions

ASIABEST GROUP International, Inc. (ABG) will seek shareholder approval for the proposed acquisition of two operating companies worth up to P6.7 billion through share-for-asset transactions as part of its plan to transform into an infrastructure and property holding company.

In a statement on Monday, the listed company said shareholders will vote on the proposals during its annual stockholders’ meeting on Aug. 11.

The transactions involve the transfer of Industry Movers Corp. (IMC) and Kabalayan Housing Corp. (KHC), or their underlying assets, to ABG in exchange for newly issued shares.

“The proposed vend-in represents another important milestone in ABG’s transformation,” ABG Investor Relations Officer Jan Michael Lim said.

“We are bringing together complementary businesses under the ABG platform while further creating a strong organization with the capabilities to participate across multiple segments of the infrastructure and property value chain,” he added. 

Under the proposal, IMC would be valued at between P3.9 billion and P5.5 billion in exchange for the issuance of 156 million to 220 million ABG shares. KHC would be valued at between P800 million and P1.2 billion in exchange for 32 million to 48 million shares.

The proposed valuations remain subject to independent third-party appraisal and regulatory approvals.

If approved, IMC would add maritime logistics operations to ABG’s portfolio, including bulk and roll-on/roll-off cargo transport, dredging, crane barge and pile-driving services, cargo handling, towing and tug-assist operations, and general cargo delivery.

KHC would contribute land assets that ABG said are intended for future housing and modular construction projects through partnerships with local government units, private developers, and landowners.

The proposed acquisitions would complement the operations of ABG Modular Development Corp., the company’s wholly owned subsidiary engaged in prefabricated concrete modular construction.

Shareholders will also vote on a proposed increase in ABG’s authorized capital stock to support the planned share issuances and future expansion.

“The proposed transactions form part of the company’s broader strategy of consolidating operating businesses under the listed entity to strengthen its long-term growth platform,” the company said.

ABG shares rose 1.54%, or 50 centavos, to close at P32.90 each on Monday. — Alexandria Grace C. Magno