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Millennium Global invests P60 million for trading firm expansion
July 04, 2013
Written by Roderick L. Abad - Business Mirror
MILLENNIUM Global Holdings Inc. (MGHI) is planning to invest P60 million in Millennium Ocean Star Corp. (MOSC) for additional working capital.
In an interview with the BusinessMirror on Wednesday, MGHI Chairman and President Yang Chi Jen said the amount is a “trial” investment and the amount may be increased, they 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,” Yang said.
Under the agreement, MGHI said in a recent disclosure that they would advance up to P60 million, payable in two years with an annual interest rate of 6.5 percent. The first half of the full amount will be given this week and the rest will follow not later than August.
The MGHI executive said the investment will come from proceeds of the subscription to primary shares with a par value of P1.
“We are also negotiating with some investors to bring in more funds, which we expect to materialize within the year,” the MGHI top executive said.
Majority-owned by Yang, MOSC is a 12-year-old company engaged in the business of trading of goods such as marine and other related products on a wholesale basis.
Seeing the growth of the import-export industry, particularly on wholesale of marine and related products, MOSC is positioning itself as a major player in the trading business.
Yang expects that with the additional working capital, this will “translate to more transaction volume, thus meeting more consumer demands. Once MOSC is able to meet the demands of its operations at a comfortable level, we expect revenues to double or even triple its current state.”
Yang also revealed that the holding company is also studying the prospect of going into the real-estate business next year.