GOTIANUN-led holding firm Filinvest Development Corp. is planning to go into the infrastructure and utility businesses for the first time, the company told the local bourse yesterday.
The holding firm, whose main business is property development, wants to put up two power plants and a water treatment facility after getting funds from the equity market.
“Filinvest Development is in the planning stages of adding infrastructure and utilities assets to its portfolio of Philippine businesses,” the company said in a disclosure.
“The company is considering two potential clean coal-fired power generation projects, namely a 150-megawatt (MW) project in Luzon and another 150 MW project in the Visayas,” it added.
The listed holding firm is already applying for permits from regulatory authorities.
Filinvest Development also said it was “in negotiations with potential equipment suppliers and potential power off-takers with respect to each project.”
The firm is conducting a feasibility study for a water desalination facility at the site of the proposed Visayas power plant. The water project will be operated using off-peak power from the power plant.
Late in November, shareholders approved the company’s plan to sell shares of stock to raise funds. Stockholders also approved the increase in the authorized capital of the company to P17 billion from P10 billion.
Under the scheme, ALG Holdings Corp., the parent of Filinvest Development, will sell not more than three billion shares in the listed holding firm. Filinvest Development will then issue new shares of the same amount and volume, which will be subscribed to by ALG Holdings.
The price of the share sale will be determined by a lead manager, which has yet to be appointed, Filinvest Development said.
To facilitate its entry into infrastructure and utilities, Filinvest Development said a “senior expert” in the local infrastructure industry will join the company on Jan. 1.
A stock market analyst said Filinvest Development has to “learn the ropes.”
“Definitely it is new food on the table. They will have to learn the ropes [and] they will hire a new work force for that,” Astro C. del Castillo, managing director of brokerage firm First Grade Holdings, Inc., said in a phone interview yesterday.
Mr. del Castillo said there is still a power shortage in the Visayas region that Filinvest Development can plug.
Filinvest Development is also into banking and financial services through East West Banking Corp., and sugar operations through Pacific Sugar Holdings Corp., Davao Sugar Central Co., Inc., Cotabato Sugar Central Co., Inc., and High Yield Sugar Farms Corp.
Filinvest Development’s profits jumped by 159% to P2.91 billion in the nine months that ended in September as property unit Filinvest Land, Inc. reported an uptick in revenues.
Shares in the holding company rose by P0.02 to P4.92 apiece yesterday.
For details on Filinvest properties, contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.
Source: Business World, 07 December 2010
RA 9646, popularly known as Real Estate Service Act ( RESA ) has been approved for implementation when its Implementing Rules and Regulations ( IRR ) was published on July 24 2010 at Philippine Daily Inquirer and Philippine Star. For details on the RESA Law, visit www.ra9646.com, the central repository of all updates on RA 9646.
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