A BROWN COMPANY, Inc. is looking to convert the company’s debt and deposits amounting to P450 million to equity.
In a disclosure to the stock exchange on Thursday, the listed holding company of the Brown Group of Companies said its board of directors approved the conversion of its debt and deposits to equity at P1.13 per share. The price is based on the 15-day volume weighted average price of the company’s shares for the period ending Oct. 11.
The conversion to equity will translate to 221.24 million shares out of a P250-million liability from Brownfield Holdings, Inc. as well as 88.5 million shares each for Valueleases, Inc. and RME Consulting, Inc. from a P100-million debt from each of the two firms.
“The transaction is intended to settle outstanding loan obligations as well as convert the deposits and at the same time strengthen the balance sheet of the company. This allowed the company to raise funds for expansion of existing businesses and investments in new projects,” A Brown said.
Incorporated in 1966, A Brown’s core business is in real estate development in Cagayan de Oro City, Misamis Oriental, in Cainta, Rizal, Bukidnon, and Agusan del Norte.
Shares in A Brown shed four centavos or 3.85% to P1.08 each at the Philippine Stock Exchange on Thursday. — Arra B. Francia