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MGHI wants to broaden portfolio
November 13, 2013
Written by Roderick L. Abad - Business Mirror
LISTED Millennium Global Holdings Inc. (MGHI) is planning a major investment push.
In a disclosure on Wednesday with the Philippine Stock Exchange, the company said it wants to broaden its investment portfolio as a general holding firm, resulting in “significant opportunities for business growth and enhancing shareholder value.”
MGHI is eyeing a combination of issuance of primary shares, sale of secondary shares, debt financing or other means seen fitted to raise funds for the planned investment or acquisition.
The company’s board of directors granted Chairman/President and Chief Executive Officer Michael Yang the authority to sign negotiations and agreements with prospective investors and interested firms.
MGHI is said to be considering buying the 51-percent controlling interest in Millennium Ocean Star Corp. (MOSC).
In July the company executed an investment agreement with MOSC to infuse P60 million as additional working capital for the latter’s trading business expansion.
This would be funded by the P125-million proceeds of the subscription to primary shares of the holding firm.
Yang earlier told the BusinessMirror that it’s just a “trial” investment, which they could eventually increase, depending on the outcome of MOSC’s expansion program.
“Once we see the good results and also our good relationship, we may convert it to shares so MGHI may become a part-owner of MOSC maybe this year or next year,” he said.
MOSC is engaged in the processing of high-quality seafood and aquaculture products for export and trading of imported marine and other related products.
With its processing plants and buying stations nationwide, it has a strong hold of the market in Japan, Taiwan, Hong Kong, Vietnam, Malaysia, Singapore, United States of America and Canada, among others.
MOSC estimates to generate sales between P15 billion and P20 billion in the next five years.