Consunji-led DMCI Mining hikes stake in Toledo to 37.7%
MANILA, Philippines - The Consunji group's mining unit increased its stake in Toledo Mining Corp. to 37.7% from 17% through a deal with an existing shareholder of the London-based miner.
In a disclosure to the stock exchange on Tuesday, February 19, DMCI Holdings said its subsidiary, DMCI Mining, has acquired the 20.7% stake held by shareholder Jason Cropper for £24.9 million (equivalent to over P156 million).
DMCI Mining, which is engaged in ore and mineral mining, bought the shares at 50 pence each. With the deal, DMCI Mining increased its stake to 18,818,344 of Toledo's existing issued shares.
“We are very pleased to have increased our investment in Toledo with the acquisition of Mr. Cropper’s shares. Our Offer to the remaining Toledo shareholders represents an attractive opportunity to crystallize a significant premium to the prevailing market price in cash today,” said DMCI Mining Chairman and CEO Isidro Consunji.
DMCI Mining will make a mandatory cash offer for the shares.
The agreement may result in DMCI holding over 50% of the voting rights in Toledo. The deal allows DMCI Mining to consolidate its ownership in Berong Nickel Corp., in which it owns 18.6% indirect interest, and its other mining assets in Toledo.
It has a majority stake in Semirara Mining Corp., the open pit coal mining operation in Antique where 5 was killed in a recent accident.
DMCI Mining has a market capitalization of $3.4 billion and has interests in construction services, water, mining and development, coal and ore exploration and power generation.
Toledo Mining is listed in London's AIM index. It has interest in two nickel companies in the Philippines, namely Berong and Ipilan Nickel Corporation. - Rappler.com