LISTED East Coast Vulcan Corp. has executed a deed of assignment of partially paid shares with Techno-Asia Construction and Development, Inc. (TACD) to increase its public float.
In a stock exchange disclosure on Wednesday, East Coast Vulcan said spouses Hilario G. Pagauitan and Sofia G. Pagauitan and TACD executed the deed for the assignment of around 486 million shares.
The shares represent 7.33% of East Coast Vulcan’s outstanding capital stock of 6.63 billion common shares.
In June, the company said that the execution of the deed of assignment and the transfer of shares to TACD would increase its public float.
“The execution of the deed of assignment and the transfer of the shares to TACD is expected to result in a change in public ownership to 21.80% which is in compliance with the Philippine Stock Exchange’s (PSE’s) 20% minimum public ownership requirement,” East Coast Vulcan said.
East Coast Vulcan, formerly known as Vulcan Industrial and Mining Corp., disclosed in June that a memorandum of agreement was signed between the Pagauitans and TACD for the acquisition of the listed company’s shares.
The company added that TACD assumes the obligation to pay East Coast Vulcan the unpaid subscription balance for the shares not later than Sept. 21 in either cash, shares, and/or assets acceptable to the listed firm’s board of directors.
“Under the [agreement], spouses Pagauitan 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 spouses Pagauitan,” East Coast Vulcan said.
In 2021, the Pagauitans, through East Coast Mineral Resources Co., Inc. (ECMRC), bought 85.5% of Vulcan Industrial from the Ramos family, which opted not to backdoor-list its National Book Store chain via Vulcan.
In June, the PSE suspended the trading of East Coast Vulcan shares after the Securities and Exchange Commission approved the increase in the company’s authorized capital stock to P12 billion, which allowed the listed firm to issue new shares to ECMRC as part of its backdoor listing plan.
However, East Coast Vulcan’s public float fell to 14.47% as a result of the move, breaching the minimum public float requirement. — Revin Mikhael D. Ochave