Magsaysay Shipping & Logistics (MSL) is almost doubling its stake in Lorenzo Shipping Corporation (LSC) through a P270 million subscription of common shares.
In a disclosure to the Philippine Stock Exchange, LSC said its Board of Directors has approved the issuance of 270 million common shares from the unissued portion of its authorized capital stock at its par value of P1.00 per share in favor of MSL’s National Marine Corporation (NMC).
“The additional capital infusion will be used for the settlement of the company’s existing liabilities and other general corporate purposes,” LSC said.
It added that, “At the conclusion of the transaction, public ownership will be at 21.35 percent of the outstanding capital of the company.” This is down from 31.73 percent.
Prior to the transaction, NMC held 276.52 million LSC shares, equivalent to 49.77 percent of LSC’s outstanding capital of 554.64 million shares. After the subscription to new shares, NMC will have a 66.27 percent stake in LSC’s expanded capital.
Lorenzo Shipping is MSL’s leading liner shipping company engaged in containerized cargo transport. It has 50 years of experience in the cargo shipping industry.
LSC owns and operates a fleet of five vessels and operates three more vessels under a transport service contract. These vessels are deployed to key ports in Manila, Visayas, and Mindanao.
The firm also owns various equipment and facilities to handle customers' cargoes, including land-based equipment such as forklifts, top lifts, and trucks; and container yards and warehouses in its branches and agencies.
LSC is engaged solely in domestic inter-island cargo liner services. It markets its services through a network of seven branches in Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan de Oro, and Bacolod, and two agencies in Zamboanga and Dumaguete.