A Brown amends joint venture with GET Philippines

A Brown amends joint venture with GET Philippines

THE joint venture of listed A Brown Co., Inc. (ABCI) and GET Philippines, Inc. will issue five million shares for a 50:50 shareholding ratio of their total outstanding shares.

In a regulatory filing on Tuesday, A Brown said that its board had approved amendments to its joint venture company with GET Philippines.

“Unless otherwise agreed upon by the Parties, ABCI and GET shall continue to retain an equal shareholding ratio of 50%-50% in JV Co.,” the company said.

“Any dividends generated by JV Co. from available retained earnings after each fiscal year from both transport and advertising operations shall be split equally by ABCI and GET,” it added.

Upon subscription of incorporation of the joint venture company, each entity will subscribe to five million shares for P22.5 million.

Earlier this year, the company forged an agreement with GET Philippines, an operator of zero-emission buses, to form a new company that will own and operate Community Optimized Managed Electric Transport vehicles in Cagayan de Oro.

“The investment will increase the portfolio of the Company and will increase revenue from the return on the investment in the future,” ABCI said.

Last week, the company said that its board greenlit the reduction in the authorized capital stock of P30 million instead of the previously disclosed P100 million.

ABCI is primarily engaged in real estate development. Its subsidiaries are in power generation, manufacturing, and trading of palm oil and other palm products.

On Monday, shares in the company went down by one centavo or 1.45% to end at P0.68 apiece. — Sheldeen Joy Talavera