EEI board clears creation of new subsidiary
EEI Corp. said its board of directors has approved the establishment of a new subsidiary and the subscription to shares worth P500 million.
In a stock exchange disclosure, EEI said the wholly owned subsidiary is designated to acquire and hold interest in various potential businesses.
“The company to be registered with the Securities and Exchange Commission (SEC) will be a holding company intended to acquire and hold interests in various potential business,” EEI said in its regulatory filing.
EEI will subscribe to a total of 500 million shares priced at P1 apiece, amounting to a total of P500 million, representing 100% of the company’s outstanding shares.
It said the closing of the share subscription is still pending approval from the Securities and Exchange Commission.
In the company’s previous disclosure, it mentioned that it had received the certificate of incorporation from the SEC for EEI Ventures, Inc.
Established in 1931, EEI has business interests in construction services and the distribution of industrial and machinery systems.
EEI is primarily engaged in the construction of power-generating facilities, oil refineries, chemical production plants, rails, ports, expressways, and high-rise towers.
Its subsidiaries include EEI Ltd., EEI Construction and Marine, Inc., and EEI Power Corp.
In 2023, the company reported an attributable net income of P149.67 million, lower by 28.5% from P209.21 million in a year earlier, due to higher expenses for the period, according to its financial statement
Last year, the company’s revenues went up to P18.75 billion, 28% higher from the P14.65 billion in 2022.
The company’s combined expenses for 2023 climbed 13.6% to P16.21 billion from P14.27 billion in 2022.
At the local bourse on Monday, shares in the company shed 22 centavos or 4.19% to end at P5.03 apiece. — Ashley Erika O. Jose