The listed firm agreed to sell 28.67 billion shares, or 71.68 percent of its stock, effectively handing control to Pure Energy Holdings Corp. and its water companies.
The company will abandon mining and focus instead on water distribution, bulk water supply, sewage, and related services.
The transaction is essentially an internal restructuring among companies owned by tycoon Dexter Tiu.
New name, new capital
To reflect the shift, Coal Asia will rename itself Tubig Pilipinas Holdings Inc.
Its board also approved raising authorized capital to P13 billion from P5 billion to support the transition.
Instead of paying cash, Coal Asia will issue new shares to Pure Water Corp., Quad Water Corp., and subject to approvals, CEF2 AO9 B.V. in exchange for their ownership in Tubig Pilipinas Group Inc.
What’s next?
The share swap values Tubig Pilipinas Group at up to P6.64 billion, based on a reference price of P10.51 per share, subject to final valuation.
Because of the massive ownership change and the complete shift in business, the Philippine Stock Exchange ruled the deal falls under backdoor listing rules and suspended trading in Coal Asia shares until requirements are met.
Shares or Coal Asia, valued at P0.028 each, have been suspended pending further review of the transaction.
—Edited by Miguel R. Camus
