Stock Commentary: ATN Holdings plans to IPO solar subsidiary and develop empty Rizal lot into solar power facility

Merkado Barkada

January 31, 2022 | 8: 30am

Arsenio Ng’s holdco disclosed the outcomes of a “special” ATN Holdings [ATN 0.77 13.24%] board meeting on Friday, and in doing so published that ATN plans to IPO a subsidiary, ATN Philippines Solar Vitality Team, Inc., “by formula of introduction”.

The board talked about that it will peek to produce a plan of land that it owns in Rizal correct into a “50 – 100MW Solar PV Project” by map of a joint accomplishing agreement with “key vitality companions”.

The board additionally approved the company to “co-invest” P2 billion with Transpacific Broadband Team Int’l, Inc. [TBGI 0.38 2.74%], yet one more company owned by Mr. Ng, in a consortium to be shaped with “the a hit bidder of the Meralco competitive choice route of (CSP) of renewable photo voltaic vitality below a 20-300 and sixty five days contract”.

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ATN’s stock label has assuredly doubled within the previous two weeks, on the heaviest volume the stock has viewed in over 3.5 years, rising from P0.40/portion to as excessive as P0.80/portion in Friday’s procuring and selling.

ATN had been procuring and selling within the dumps ever since a leisurely-November shareholder’s meeting ratified an enormous subscription by Ng of approved nonetheless unissued capital stock at P0.20/portion (the stock modified into procuring and selling at P0.90/portion on the time).

Became there a leak of private data that induced this sort of determine-up of ATN’s stock, or is that this appropriate a truthful speculative play on the portion of merchants to acknowledge that ATN modified into about to score in a brand fresh hype cycle that comprises something about “photo voltaic vitality”, which appropriate so happens to be the two most up-to-the-minute buzzwords available on the market appropriate now.

Any company can characterize an empty plan of land and train “presumably we’ll IPO the subsidiary that owns that, after someone else develops it into something for us in a JV”.

Be cautious.

I’m not asserting that ATN isn’t planning to pursue the deal, or that they’re being deceitful in any portion of this disclosure, nonetheless I am asserting that merely asserting these things doesn’t construct any of it precise.

They’ve purchased a thought, and a photograph voltaic vitality glint of their eyes that will most likely be laborious to envision behind the greenback-signs. 

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Merkado Barkada’s opinions are offered for informational functions handiest, and ought to not be concept of as a recommendation to snatch or sell any particular stock. These daily articles are probably to be not up-to-the-minute with fresh data, so each and every investor need to perform his or her be pleased due diligence forward of procuring and selling, because the facts and figures in each and every particular article would possibly presumably well even contain modified.