GOKONGWEI-LED JG Summit Holdings Inc. (JGS) on Thursday said that it would be infusing P17.1 billion in fresh capital to wholly-owned subsidiary JG Summit Olefins Corp. (JGSOC) to pay off the latter’s maturing loans.
The infusion will involve a subscription to more than 6.93 billion shares of JGSOC at P4.95 apiece, it told the stock exchange.
“JGS will subscribe to additional shares of JGSOC, which will be partially issued out of an increase in capital stock and partially through existing unissued shares,” the company said in a stock exchange filing.
The capital infusion will be subject to regulatory approvals.
JGSOC reported a net loss of P11.4 billion for the first nine months of 2024, despite a healthy increase in revenues of 58 percent to P38 billion.
The net loss was blamed on weak demand and an oversupply in the global market.
JG Summit’s shares ended down 2.67 percent to P21.85 on Thursday.
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