Abacus assigns aviation arm to deal with Indonesian carrier
BUSINESSWORLD ONLINE, FEBRUARY 28, 2012
ABACUS CONSOLIDATED Resources & Holdings, Inc. has reassigned its option to buy into an Indonesian airline to its aviation subsidiary, a disclosure to the local bourse showed yesterday.
Following a regular meeting yesterday, the company’s board said it has approved the assignment of the option to invest $1 million into Indonesia-based Lite Aviation Holdings, Ltd. to wholly-owned unit PRIDE Aeropark, Inc., which operates a private airfield envisioned as a flying and training school for pilots.
This, after a memorandum of agreement for the joint venture was signed last October.
Abacus Consolidated had earlier said the investment, which represents a 33% stake in Lite Aviation Holdings will be undertaken by its subsidiary Tagapo Realty Co., Inc.
Moving forward, Abacus Consolidated said it will not pursue an option to double its investment in Lite Aviation Holdings to $2 million until it is able to confirm that the company’s investor counterparts in Indonesia have been able to raise a similar amount as well.
Lite Aviation Holdings was not immediately available for comment.
In addition, Abacus Consolidated’s board also ratified the supplemental deed of assignment executed last Feb. 17 with subsidiary Abacus Goldmines Exploration and Development Corp., which transferred 102 gold mining rights to the latter firm.
Under the transaction, Abacus Goldmines will issue 290 million new fully-paid common shares at P1 apiece in exchange for the assignment of the gold mining rights.
The right have an estimated valuation exceeding P290 million, an earlier report showed.
The company further said it wants to tap the debt market to finance its operations and investment fund requirements, particularly via a P100-million loan from Philippine Business Bank, which it had already applied for.
A work program is currently being prepared for the utilization of the loan proceeds, Abacus Consolidated said.
The holding firm, incorporated in 1981 as coal miner Piedra Negra Mining Corp., changed its name in 1989.
Abacus Consolidated owns a minority stake in listed Pacific Online Systems Corp., which in turn holds the exclusive right to lease online lottery equipment for the operation of the state-owned Philippine Charity Sweepstakes Office in Visayas and Mindanao.
As of last year, the company said it has 102 gold mining claims in the municipalities of San Francisco and Rosario in Agusan del Sur.
The company hiked its net income for the nine-month period last year by 24.45% to P27.54 million versus P22.13 million in 2010 due to lower costs despite a drop in revenues, its latest financial statements show.
Total revenues for the period fell by 3.69% to P44.93 million from P46.65 million in 2010 due to a reduction in dividend and interest income for the period.
Expenses meanwhile shrank by 23.81% to P14.05 million versus P18.44 million, year on year.
Abacus Consolidated share prices fell by 1.45% to end trading at 68 centavos apiece yesterday from 69 centavos at its previous close.–Franz Jonathan G. de la Fuente
