Bright Kindle Resources & Investments Inc. (BKR), a listed investment holding company, said it secured Securities and Exchange Commission (SEC) approval for two key corporate developments involving its subsidiary, Brightstar Holdings & Development Inc. (BHDI).
BKR said regulators approved the increase in BHDI’s authorized capital stock to P7 billion, divided into 70 billion common shares with a par value of P0.10 per share. It added that the SEC also gave the green light to BHDI’s acquisition of Strong Built (Mining) Development Corp.
Under the terms of the transaction, BHDI will issue new common shares and assign condominium assets, valued collectively at up to P5 billion to shareholders of Strong Built.
With the issuance of new shares of BHDI, BKR’s ownership in BHDI wil be significantly diluted to 2.97 percent from 99.99 percent.
BKR had earlier disclosed the transaction that significantly expands BHDI’s economic and financial capacity as well as diversify its investment portfolio into the mining industry with the pending acquisition of Strong Built.
The move underscores a strategic pivot by BHDI to engage outside capital, sharing equity with new shareholders linked to the Strong Built acquisition. BKR remains the dominant historical shareholder, but its influence has been considerably reduced due to the inflow of new equity.
With the SEC’s approval now secured, BHDI may proceed to issue new shares and finalize the Strong Built acquisition. The capital infusion and asset transfer are expected to reinforce BHDI’s long-term growth plans, albeit at the expense of BKR’s controlling stake.
