Bright Kindle Resources & Investments’ Inc. shares were suspended on Wednesday after the listed holding company owned by House Speaker Martin Romualdez’s family announced plans to purchase magnetite sand mining firm Strong Built (Mining) Development Corp. for P5 billion.
“In view of the materiality of the information reported in the company’s disclosure and pending submission of additional information regarding the transaction, the trading of BKR shares was suspended effective at 9:30 a.m. today, May 22, 2024,” the Philippine Stock Exchange said in a notice.
Major acquisition
This will be the largest acquisition for the zero-operations holding company, which owns 19 percent of listed nickel miner Marcventures Holdings.
In a stock exchange filing on Wednesday, Bright Kindle said its subsidiary Brightstar Holdings and Development Inc. approved the acquisition of Strong Built. This will involve the issuance of P5 billion worth of company shares and assets.
Brightstar Holdings’ Board also approved amending the Articles of Incorporation to increase the authorized capital stock to P7 billion.
Magnetite sand is a valuable construction resource used in the production of iron, steel, and concrete.
Suspension
Strong Built was one of the mining companies suspended during the industry crackdown led by the late environmentalist and former Environment Secretary Regina Paz “Gina" Lopez.
It was allowed to resume operations in 2020, according to a report by the Philippine Center for Investigative Journalism.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
