Reporter

NATIONAL Reinsurance Corp. of the Philippines (National Re) intends to raise P3 billion of fresh funds via an initial public offering (IPO) this April.

A source privy to the IPO said Tuesday, the shares offer will mostly be given to domestic investors, and only a small portion will be allocated to foreign buyers. National Re has appointed BDO Capital as issue manager.

“National Re will be selling 20 percent to 30 percent of its shares of stock to the public before the May elections. The move to go public is in line with its goal to widen the company’s ownership base,” the source said.

The company, which acts as the insurer of insurance companies, will use the IPO proceeds to take on additional risks and service its clients here and abroad. The additional funds will also give the National Re, the capacity to absorb higher levels of risks.

“Having an adequate capital is crucial to insurance like in any other financial services industry. The ability to take risks is dependent upon the level of capital,” explained the source.

Going public, according to the source, has long been planned by National Re. Its institutional stockholders include the Government Service Insurance System, Universal Malayan Reinsurance Corp. and the BPI Group. Each holds 24-percent equity in the company. Various insurance companies and individual stakeholders own the remaining equity.

“In the process of raising capital through the IPO, the institutions holding the 72-percent ownership in the company will go down to probably 50 percent. The dilution will be through the issuance of primary shares,” the source explained.

 The IPO, he said, is part of the capital enhancement program crafted by the company in 2003. The first two phases—a stock rights issue and the merger with Universal Malayan—were successfully completed.

After the IPO, National Re will be embarking on forming a strategic alliance with a foreign partner to expand its business in the Asia.

 A reinsurer, National Re covers the risks of its insurance company clients. It started operations in 1978 by virtue of Presidential Decree 1270. Its total premiums then were P20 million. At the end of 2006, the company’s gross premiums amounted to P3.8 billion and its net income reached P260 million.

NATIONAL Reinsurance Corp. of the Philippines (National Re) intends to raise P3 billion of fresh funds via an initial public offering (IPO) this April.

PC games distributor Asian Media Development Group (AMDG) has been tapped by Korean gaming giant NCsoft Corp. to market and distribute in Southeast Asia, the popular Internet game “Lineage II” through a $5.5-million deal. The deal rides on an exclusive marketing and distribution agreement.

JINCHUAN Group Ltd., China’s biggest producer of nickel and cobalt, is conducting due diligence on the Palawan nickel mine of MacroAsia Corp., a publicly listed holding company controlled by business tycoon Lucio Tan.

COCO-BIODIESEL manufacturer Chemrez Technologies Inc. said on Tuesday that it has started exporting its BioActiv premium coco-biodiesel to the European Union’s (EU) Germany. The shipments were of commercial quantities after several trial deliveries last year.

Section 28 of the of the Corporation Code states that any director or trustee of a corporation may be removed from office by a vote of the stockholders holding or representing at least two-thirds (2/3) of the outstanding capital stock, or if the corporation be a nonstock corporation, by a vote of at least two-thirds (2/3) of the members entitled to vote: Provided, That such removal shall take place either at a regular meeting of the corporation or at a special meeting called for the purpose, and in either case, after previous notice to stockholders or members of the corporation of the intention to propose such removal at the meeting.