RP steel firm to go public

RP steel firm to go public

MANILA (AFP): Debt-saddled National Steel Corp., the Philippines' largest steel maker, said yesterday it will go public as part of a deal allowing Wing Tiek Holdings Bhd. of Malaysia to acquire the firm.

National Steel told the Securities and Exchange Commission (SEC) it will offer 372.5 million common shares at 10 pesos a share to be subscribed by Wing Tiek, a subsidiary of the Westmont Group.

The state investment firm National Development Co. (NDC), which controls the steel firm, earlier concluded a deal with Wing Tiek to buy between 50 and 95 percent of National Steel over two years.

The deal calls on Wing Tiek to acquire 11.2 billion pesos (US$466.67 million) of new shares representing half of National Steel equity, and buy between 3.9 to 7.1 billion pesos ($162.5 million to $295.8 million) of existing shares representing 25-39 percent of equity.

Ten percent of NDC's common shares in National Steel, worth 936.43 million pesos, will be offered to small Filipino investors, the firm told the SEC.