In The News

Abacus unloads non-earning subsidiary

The Manila Times Internet Edition, Saturday, June 14, 2008

ABACUS Consolidated Resources and Holdings, Inc. (ABA) disclosed to the Philippine Stock Exchange that it would transfer all outstanding capital stock of its non-operational subsidiary to its parent firm, Blue Stock Development Farms, Inc. so it can concentrate on its core business and clean its books of the subsidiary’s deficit.

ABA said the board approved the assignment of 50 million shares at P1.00 each of Hedge Issues Management and Leverage Advisors, Inc. to Blue Stock, which owns 41.82 percent of ABA at end-May. At end-December, Hedge Issues has accumulated a capital deficit of P4.24 million.

ABA said that since the subsidiary has a capital deficiency, its book value is negative, therefore, the price is "reasonable."

"The assignment will enable Abacus to focus on its current lines of business. The transaction will, furthermore, be advantageous to Abacus in that the deficits of Hedge Issues will no longer be carried over in the consolidated balance sheets of Abacus," ABA told the local bourse.

The bulk of Hedge Issues’ business is in trading the shares of the former Suricon Resources Corp., which is already inactive. Last year, Hedge Issues also incurred P73.82 million in losses.

"The company, in order to arrest its current position, plans to venture into real estate which involves corporate planning, funding and operating profitability," Hedge Issues said in its latest financial statement.

In April, ABA announced that it will transfer its coal operating contract, mining rights and properties to Abacus Coal Exploration and Development (ACED) in exchange for and in payment for new shares to be issued by ACED.

The company said the transfer will complete the spin-off of coal mining and allow the holding firm to focus on its core competency and facilitate the entry of investors who are looking into the development of coal properties.

The ABA board also approved the sale of 586.5 million treasury shares at P0.01 per share through the local bourse upon reaching the desired price for the sale.-- Likha C. Cuevas-Miel

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Abacus unit enters into JV for Batangas project

Business World Online, 18 February 2008

An investment house subsidiary of listed Abacus Consolidated Resources and Holdings, Inc. inked a full joint-venture agreement for a real estate development in the Batangas province.

In a disclosure, Abacus said Philippine Regional Investment Development Corp. (PRIDE) executed an agreement with Solar Resources, Inc. to develop upscale residences and townhouses on a property adjacent to the Montemaria Shrine in Batangas City.

The joint venture entails PRIDE as the contributor of the 82-hectare land that is covered by the Pagkilatan and Matuco barangays, and Solar as the developer of the property.

"In return for the respective contributions of the parties, SOLAR will get 65% and PRIDE 35% of the net saleable area," corporate Secretary Joaquin E. San Diego told the exchange.--Lovely Nica P. Lee

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Abacus gets P102.5-million downpayment for 4-to-1 stock rights offer

Business World Online, 28 January 2008

Publicly listed Abacus Consolidated Resources and Holdings, Inc. has received a portion of the funds it raised from its stock rights offering that ended on Jan. 16.

In a disclosure, corporate Secretary Joaquin E. San Diego said the company received P102.5 million, representing the 25% downpayment made by shareholders that participated in the stock rights offer.

The company offered 39.894 billion shares to stockholders as of Dec. 21, 2007.

To be listed at the bourse today, the issued shares, which were priced at one centavo per share, would generate P396.386 million in proceeds.

Mr. San Diego said the offering, which allowed investors to buy one share for every four held, was fully subscribed.

"A total of 8.538 billion shares were purchased during the first and second round of the offering. The remaining shares were taken up by Blue Stock Development Farms, Inc. which had earlier issued an unconditional undertaking to purchase all shares remaining after the offer period," he told the exchange.

The biggest subscriber, PCD Nominee Corp., took up 8.3 billion shares or 21% of the offer shares and increased its stake to 36.26% from 33.17%.

Meanwhile, Blue Stock Development Farms, Inc., which owns 61.63% of Abacus, was diluted to 59.58%.

In its prospectus, Abacus said the proceeds would be used to fund its programs for 2008 to 2011.

Of the total P396.386 million it expects to receive, P50 million would be used for the exploration and development of its gold and coal mining properties located in Agusan del Sur and Surigao del Sur, respectively.

Abacus had earlier told BusinessWorld it would be forming gold and coal mining subsidiaries once the properties were formally spun off.

About P282.886 million would be to finance a 100-hectare upscale residential and resort development adjacent to the Montemaria shrine in Batangas City.

The four-year project will be a joint venture with Solar Resources Corp. The agreement for the project will be signed this year.

"Aside from the capital to be raised from the stock rights offer, the project will require additional funding which will come from internally generated funds and project loans," Abacus said.

The remaining proceeds will serve as additional funding for its financial services subsidiaries, namely Philippine Regional Investment Development Corp. and Rural Bank of Batangas, Inc.

Abacus owns a controlling interest in gaming firm Pacific Online Systems Corp. along with fellow listed property developer Belle Corp.--Lovely Nica P. Lee