DMCI Holdings Unit Raises Stake in Toledo Mining; To Make Cash Offer

   By Cris Larano 
 

MANILA--DMCI Holdings Inc. (DMC.PH) said Tuesday that its wholly-owned unit, DMCI Mining Corp., has raised its stake in Toledo Mining Corp. PLC (TMC.LN) to 37.7% from 17%.

DMCI Holdings said that as a result of the purchase of the additional 20.7% stake in Toledo Mining, a company listed on the AIM market operated by the London Stock Exchange, DMCI Mining will have to make a mandatory cash offer to acquire the remaining shares of Toledo Mining that it doesn't hold, based on LSE rules.

DMCI Mining acquired the additional stake from Jason Cropper for 50 pence a share, the same price it will offer to other shareholders of Toledo Mining.

At 50 pence per share, Toledo Mining is valued at GBP24.9 million ($38.6 million). DMCI said the offer price is a 61% premium to the 31 pence price of Toledo Mining on Feb. 14, the day before the tender offer was announced.

Toledo Mining has a 40% stake in Berong Nickel Corp., a Philippine nickel miner, where DMCI Mining owns an 18.6% stake.

DMCI Holdings didn't say when its unit will make the cash offer. It said DMCI Mining will use reserve cash to fund the GBP15.5 million needed to buy the remaining shares held by other Toledo Mining stockholders.

Write to Cris Larano at [e-mail]

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