FNI acquires steel subsidiaries

MANILA, Philippines — Listed Global Ferronickel Holdings Inc. (FNI) has acquired full ownership of two subsidiaries in line with its plans to construct its Bataan steel manufacturing plant on its own.

In separate disclosures to the Philippine Stock Exchange yesterday, FNI said it acquired the shareholdings of Hong Kong-based Huarang Asia Limited in FNI Steel Corp. (FSC) and FNI Steel Landholdings Corp. (FSLC).

FNI acquired 1.225 million shares of FSC at a price of P100 per share. This represents a 49 percent stake in the company.

With the acquisition, FNI’s 51 percent shareholding in FSC will now be increased to 100 percent. The company will now be a wholly-owned subsidiary of FNI.

“FNI, as sole owner of FSC, can now fully decide on how to carry on with the plans to start the facility construction in 2022,”the company said.

“Timeline on full commercial operations to be set once construction is underway,”it said.

FNI said it would continue to diversify and expand to businesses in line with its growth potential.

Meanwhile, the company also acquired 300,000 shares of FSLC at a price of P100 per share, representing a 40 percent stake.

This brings total shareholdings in FSLC to 100 percent.

“FNI, as sole owner of FSLC, can exert full control of FSLC and its revenue,” the company said.

FSC was formed to build a rebar steel rolling plant in Mariveles, Bataan.

FSLC, on the other hand, was formed to own real properties necessary for the business of FSC.

Instead of partnering with other parties, FNI decided to construct the steel plant on its own. Construction of the facility, which will have an annual output of 60,000 tons of steel bars, will begin next year. It is estimated to cost $50 million.

If you like this article, share it to social media by clicking any of the icons below.

Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.

Article was originally published in Philippine Star and written by Catherine Talavera.