MARKET HEADLINE: SHORT SELLING BY OCTOBER

MRC Allied, Inc.
#1
Business Profile:

MRC Allied, Inc. (MRC) or (“the Parent Company”) are incorporated in the Philippines. The Parent Company is the first publicly listed, property development firm in the Philippines which has found its niche in development of master planned, integrated residential, commercial, recreational, tourism and industrial areas within a single community or township.

Formerly operating as Makilala Rubber Corporation, (incorporated on November 20, 1990), the Parent Company’s actvities had been primarily the processing and export of baled natural rubber. In 1993, new stockholder acquired the Company form Philtread Tire & Rubber Corporation and diversified it into real property development, more particularly, into township development.

On October 25, 1994, the Securities & Exchange Commission approved the change of name of Makilala Rubber Corporation to MRC Allied Industries, Inc. In 1995, MRC listed its entire 500 million shares in the Philippine Stock Exchange with an initial public offering share price of three pesos (P3.00) per share. In 1997, MRC decided to divest its rubber business to Makrubber Corporation, its wholly owned subsidiary, to focus on its core business, real property development. Makrubber stopped its operations in 2000 because of the worsening raw material supply due to the Land Reform Program and the peace and order problems in North Cotabato.

Since 2000, MRC has had minimal operations and simply continued and maintained its two ecofriendly projects: the New Cebu Township One (NCTO) of Naga, Cebu; and Amihan Woodlands Township (AWT) of Northern Leyte.

On July 21, 2008, MRC held its annual stockholders’ meeting at the Manila Polo Club for the purpose of electing the new members of its Board of Directors for the term 2008-2009. The stockholders also
approved the amendments to MRC Allied Industries, Inc.’s existing Articles of Incorporation in line with the rationalization and quasi-reorganization of the Company, as follows:

(i) Change in the corporate name from “MRC Allied Industries, Inc.” to “MRC Allied, Inc.”;

(ii) Decrease in the par value of MRC’s common shares from P1.00 per share to P0.20 per share, with the corresponding decrease in its authorized capital stock form P500 million divided into 500 million common shares with a par value of P1.00 per share to P100 million divided into 500 million common shares with a par value of P0.20 per
share;

(iii) Increase in its authorized capital stock of up to, or not exceeding P9.50 billion or 47.5 billion shares at a par value of P0.20 per share;

(iv) Debt to equity conversion, wherein an issuance of shares from the increased of up to, or not exceeding P750 million or 37.5 billion shares out of such increase in the authorized capital stock.

The rationale behind the capital restructuring and proposed modification of the Parent Company’s issued and outstanding common shares is to reduce its outstanding deficit. On the other hand, the proposed increase in MRC’s authorized capital stock will give way to additional capital infusion by potential investors.

On 8 August 2008, the Board of Directors elected the officers of MRC Allied and its various committees namely the Audit, Nominations and Compensations Committees. During the same meeting, the Board approved the partial implementation of the increase in its authorized capital stock by P2.9 billion divided into 14.5 billion shares with par value of P0.20 per share, thus increasing its authorized capital stock form P100 million divided into 500 million shares to P3.0 billion divided into 15 billion shares with par value of P0.20 per share.

On 23 September 2008, Pacific Asia Capital Corporation (PACC) now Menlo Capital Corporation (MCC) and MRC entered into a Deed of Assignment wherein the following resolutions were made:

(i) assumptions of liabilities by PACC of P328.50 million from various creditors of MRC;

(ii) MRC agreed for the settlement or extinguishment by PACC of its loans from various creditors;

(iii) PACC and MRC agreed to extinguish the debt by converting it into common shares out of MRC’s increased authorized capital stock of P3.0 billion’

(iv) PACC shall subscribe to P725 million covering the 25% minimum subscription for the partial increase of MRC’s authorized capital stock of P2.9 billion or 3.625 billion shares out of the 14.5 billion shares increase with par value of P0.20 per share;

(v) PACC shall assign, convey, transfer and consider as extinguished MRC’s debt in the amount of P328.50 million as partial payment for 1.642 billion shares. As a result of this agreement, PACC shall have 3.625 billion shares, or 87.88% of the outstanding capital stock of MRC, thus effectively acquiring control over MRC.

The above resolutions were subsequently approved by the Philippine Securities and Exchange Commission (SEC) on March 25, 2010.

The above developments will pave the way for the entry of potential investors through financing, shares or property swaps or such other funding mechanisms to meet the mobilization fund required for the Parent Company’s re-entry into the industry to find its niche again in the development of master planned, integrated residential, commercial, recreational, tourism and industrial areas within a single community or township. These would enable MRC to develop its existing properties and to acquire/sell additional properties that will complement its overall growth strategy, given the favorable developments in the real estate sector.

Source: Annual Report 2010
Results of Operations:

MRC ended the 1st quarter of 2011, with a total net loss of P6.75 Million compared to P11.49 Million in the 1st quarter of 2010. The decrease was largely due to the decrease on interest and penalties brought about by the extinguished loans and other payables of the Company.

Source: Q12011 Financial Report
Aussie firm seeks deal for Surigao del Sur mine

MINER MRC Allied, Inc. is in talks with an Australian firm for the development of the former’s gold and copper reserves in Surigao del Sur.

The firm said in a disclosure to the Philippine Stock Exchange yesterday that it has received a proposal from a Sydney-based company expressing interest to develop its 3,718-hectare property in the municipality of Marihatag in Surigao del Sur.

MRC Allied said that in the proposal, the Australian firm is looking at a joint venture agreement involving the creation of a new company, where in MRC Allied will have a controlling stake and be represented by MRC Surigao Mines, Inc.

Miguel A. Bitanga, chief information officer of MRC Allied declined to name the Australian firm, citing a confidentiality agreement.

The new company, MRC Allied said, will have an initial valuation of $200 million.

The proposal is also for the joint venture to hold an initial public offering (IPO) on the Australian Stock Exchange with the Marihatag property as its primary asset, MRC Allied added.

Specifics on the level of funds expected to be raised through the IPO have yet to be finalized, Mr. Bitanga said.

“More details will be disclosed as soon as a final agreement is reached.

Negotiations are currently ongoing but are at an advanced stage,” he said.

MRC Allied entered into a mining operations agreement for the Marihatag property in January. MRC Surigao Mines with P1 billion in capital was formed under the agreement.

Last month, MRC Allied said it is set to seal a deal of up to $50 million with British and Spanish investors for its 7,900-hectare Kiblawan gold and copper project in Davao del Sur.

The Kiblawan gold and copper project is near the Tampakan gold and copper mine, the largest in Asia.

Shares in MRC Allied were last traded at P0.66 apiece yesterday, down by 5.71% from Friday’s close of P0.70 apiece. -- Louella D. Desiderio

http://www.bworld.com.ph/content.php?sec...e&id=32603


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#2
After the news came out re: impending JV with an undisclosed Australian Mining Firm and possible IPO listing at ASX, MRC gapped up stronglyat the bell to 0.69 and never looked back at its previous close of 0.66... and hitting a high of 0.76 missing by just a hairline the 132day sma(blue) before settling at .71 to close the trade.
We need yet to see tomorrow another run and see it break 77 and close at least at 78, possible low range of .68-72, with strong support at 68,....Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#3
PCCI and Guild absent today, did not report for duty. Rolleyes Busy with LIHC and CEI? Big Grin
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#4
(06-09-2011, 01:31 PM)Ruach Wrote: PCCI and Guild absent today, did not report for duty. Rolleyes Busy with LIHC and CEI? Big Grin

Di cguro nagising nasobrahan sa mamam...tapos malamig pa hihihi

Wow.... I am already impressed the way the updates are working ,and now...there is someone whom I feel I can relate with with regards to the architectural design of each stock...and suprisingly with these kind of stock where everypne is afraid to touch...We will Join forces Ms Ruach....Hats offf to you...Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#5
^^Been in and out of this stock and I am thankful that I am able to exit always with gains. Before I entered this stock last March, I observed how the brokers move this stock before I did an actual buying just to give me confidence.
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#6
Rainbow 
(06-10-2011, 02:14 PM)Ruach Wrote: ^^Been in and out of this stock and I am thankful that I am able to exit always with gains. Before I entered this stock last March, I observed how the brokers move this stock before I did an actual buying just to give me confidence.

So I now declare you ms Ruach as a PROUD member of the CHUCKY DOLLS...Keep on going ...Keep on winning... Congrats and you are now a Survivor with colors Heart
"The gut-feel of the 55-year old trader is more important than the mathematical elegance of the 25-year old genius."
-Alan Greenspan-
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#7
Clarification of the news article by MRC:

““Aussie firm eyes mine dev’t tie-up with MRC Allied” published in the June 10, 2011 issue of The Manilla Bulletin. The article reported in part that..
……
MRC’s entry into the mining business was formalized the following the signing of a mining operations agreement with Alberto Mining Corporation.

Under the agreement, MRC will issue P300 million worth of shares and cash to Alberto Mining, which is reportedly the same group behind the Sagittarius Mines, which owned the 11,000- hectare Tampakan copper-gold project.

With regard to the item which states “MRC will issue P300 million worth of shares and cash to Alberto Mining”, we would like to clarify that this is apparently a misquote since the total consideration for the Surigao Mines is P310 million – which shall be a combination of cash and shares.

Further, we would like to clarify that pursuant to the terms of the agreement, the consideration shall be in tranches and payable over a period of time. Currently, Alberto Mining is holding on to secondary shares with the option to swap it to primary shares in the mining subsidiary to be incorporated and named MRC Surigao Mines Inc.

http://www.pse.com.ph/html/disclosure/pd...39_MRC.pdf
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#8
MRC expects to finalize $50-M placement

Sunday, 12 June 2011 17:12 Miguel R. Camus
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MRC Allied Inc. expects to close a $50 million private placement transaction with European investors next week, proceeds of which will be used to fund the exploration of its flagship mining property beside the $5.9 billion Tamapakan project in Mindanao.

In a briefing with reporters on Friday, MRC chief executive officer Benjamin Bitanga said the company is finalizing pricing details for the deal, to be carried out through subsidiary MRC Tampakan Mines.  

MRC Tampakan’s property covers an 8,000-hectare area straddling the municipalities of Kiblawan, Davao del Sur and Columbio in Sultan Kudarat.

We are looking at a valuation where $50 million will buy 40 percent of MRC Tampakan with 60 percent still being owned by MRC Allied,” Bitanga said.   

The plan also involves listing MRC Tampakan on the London Stock Exchange.

MRC is separately considering a joint venture proposal  by a unidentified Australian group covering the company’s 3,718-hectare property in Marihatag, Surigao del Sur.

The proposal involves the creation of an Australian company, where MRC will own a maximum 49 percent interest, which will be listed on the Australian Stock Exchange.

We have received their proposal and we will make a decision in the next few days,” Bitanga said.

MRC also holds mining properties covering 9,720 hectares in Davao Oriental, within the municipalities of Boston and Cate-el, and expects to receive proposals for these from various foreign companies, Bitanga added.

Meanwhile, MRC remains keen on developing idle properties in Cebu and has begun talks with overseas casino groups interested in operating in the popular tourist island, Bitanga said, alongside a proposal to Philippine Amusement and Gaming Corp.

Bitanga clarified that MRC’s role will be limited to leasing its property to operators and developing infrastructure on the site, estimated to cost P700 million.

http://www.businessmirror.com.ph/home/co...-placement
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#9
MRC Allied eyes casino business

MANILA, Philippines - MRC Allied Industries Inc., a holding firm owned by a group led by businessman Benjamin Bitanga, is planning to venture into the casino business as part of a plan to transform its idle property in Cebu City into an integrated entertainment resort complex.

In a briefing Friday, Bitanga said the company wants to actively pursue gaming entertainment and tourism to capitalize on the lack or limited number of gaming facilities in the provinces.

Bitanga said the company is in discussions with the Philippine Amusement and Gaming Corp. to put up a casino in its 160-hectare industrial estate in Naga City, Cebu.

He said the company is hoping to take advantage of the growing appetite for gambling.

The casino industry is a global gaming industry generating a large volume of revenues and one that has been flourishing strongly, particularly as affluence grows in Asia. It likewise offers a large variety of employment opportunities.

Since 2000, MRC has had minimal operations and simply continued and maintained its two eco-friendly projects: the New Cebu Township One of Naga, Cebu and Amihan Woodlands Township of Northern Leyte, consisting of 700 hectares of raw land.

Located 35 kilometers away from the Mactan International Airport, the industrial estate in Naga City, known as the New Cebu Township One (NCTO), is registered with the Philippine Economic Zone Authority as a special economic zone. At present, the lead locator in the park is Kyocera, a Japanese manufacturer of ceramics. Further development is required to fully maximize the value of this property.

Also classified as a special economic zone, the Leyte Property was originally planned as an eco-tourism project, considering the more than 10 km coastline that rises to forested mountains. No major development of the property, however, has been undertaken.

http://www.philstar.com/Article.aspx?pub...eId=695582
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#10
(06-10-2011, 02:23 PM)BORDzTRADAMUS Wrote:
(06-10-2011, 02:14 PM)Ruach Wrote: ^^Been in and out of this stock and I am thankful that I am able to exit always with gains. Before I entered this stock last March, I observed how the brokers move this stock before I did an actual buying just to give me confidence.

So I now declare you ms Ruach as a PROUD member of the CHUCKY DOLLS...Keep on going ...Keep on winning... Congrats and you are now a Survivor with colors Heart
Master B, Bazoorero rin pala tulad nyo?? Hats off to you din maam ,kumikita kayo ke Chucky, ako puro break even or cut loss Big GrinBig Grin isang beses pa lang ako kumita sa kanya cei ,Chucky me araw ka rin,jap kung tama basa ko sayo sa geo ,huli ka

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