East Coast Vulcan public float rises

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EAST Coast Vulcan Corp., formerly Vulcan Industrial & Mining Corp., said Wednesday that its principal shareholders had executed a deed of assignment for the transfer of more than 486 million partially paid shares of the company to Techno-Asia Construction and Development Inc. (TACD).

The transfer of the shares was made to raise the company’s public float above the minimum public ownership requirement and in pursuance of an earlier agreement with TACD.

“Pursuant to the memorandum of agreement dated June 22, 2023 executed by Spouses Hilario G. Pagauitan and Sofia G. Pagauitan and Techno-Asia Construction and Devt. Incorporated, spouses Pagauitan and TACD executed September 11, 2023 a deed of assignment of partially-paid shares for the assignment of the 486,055,662 partially-paid shares of East Coast Vulcan Corporation to TACD,” the company said in a disclosure.

The shares transferred represent 7.33 percent of the outstanding capital stock of 6.63 billion common shares of the company, East Coast Vulcan said.

Last June 23, East Coast Vulcan told the stock exchange that under its agreement with TACD, “the Pagauitan spouses and TACD shall enter into a deed of assignment evidencing the assignment and transfer of the shares to TACD upon the issuance by the Bureau of Internal Revenue of the certificate authorizing registration for the previous transfer of shares from National Book Store to the Pagauitan spouses.”

As stipulated in the agreement, TACD would also “assume the obligation to pay to the company the unpaid subscription balance for the shares not later than September 21, 2023.”

East Coast Vulcan said payment for the transaction would be either in cash, shares or other assets acceptable to its board of directors.

The company has said that the execution of the deed of assignment and transfer of the shares to TACD would raise its public float to 21.8 percent, above the 20 percent minimum required by the Philippine Stock Exchange.

The bourse suspended its shares from trading on June 2 after its public ownership fell below the 20-percent threshold.

Prior to the trading suspension, East Coast Vulcan’s shares last traded at P1.24 apiece.

Source: The Manila Times