MRC Allied Inc. is investing an initial P75 million to acquire controlling ownership of Bitstar Prime Holdings Inc. which will be its corporate vehicle for its telecommunication and broadband business.
In a disclosure to the Philippine Stock Exchange, MRC said its Board of Directors has approved the firm’s subscription of up to 75 million Bitstar Prime shares with a par value of P1.00 per share.
It explained that, “MRC’s subscription will enable it to have controlling ownership. interest of Bitstar Prime and thereafter utilize the same to purchase and house telecommunication and broadband assets.”
Upon completion of the transaction, MRC will assign to Bitstar Prime its rights and obligations under two agreements.
First is the Memorandum of Agreement between MRC and 5G Security Inc. dated December 9, 2020 for the acquisition by MRC from 5GS of Kerberus Corporation (to be renamed Bitsar Telecom Inc.).
The second is the Memorandum of Agreement between MRC and Menlo Capital Corporation dated February 27, 2023 for the acquisition by MRC 500 million common shares owned by Menlo in PT&T Corp.
MRC will likewise utilize Bitstar Prime to subscribe to up to P1 billion worth of PT&T Corp.’s Serial Cumulative Convertible Redeemable Preferred Stocks with par value of P10.00 per share.
The subscription transaction between MRC and Bitstar Prime will be finalized on or before January 30, 2024 through the execution of a Subscription Agreement.
MRC said this is part of its business plan to become a significant player in the fast-growing Information and Communication Technology Industry in the country.