Lorenzo Shipping Corp. said its board approved the sale of 270 million shares at par value to National Marine Corp. for a total P270 million.
The share block will give NMC, a part of the Magsaysay Shipping Group, a 32.7 percent stake in Lorenzo Shipping.
Proceeds from the shares sale will be used primarily to settle existing liabilities and support other general corporate purposes. This move is part of Lorenzo Shipping’s efforts to strengthen its financial position and streamline operations as it addresses its current obligations.
Following the completion of the shares sale, the public ownership in Lorenzo Shipping will be reduced to 21.35 percent of the listed company’s total outstanding shares. The share issuance represents a strategic step to bolster the company’s capital base, enabling it to focus on its long-term operational goals.
Lorenzo Shipping has faced financial challenges in recent years, and this infusion of capital is expected to provide the company with the necessary resources to stabilize and position itself for future growth. The decision aligns with the company’s broader strategy to optimize its financial health while maintaining its competitive position in the shipping industry.
NMC used to be state owned until its privatization in 1988. Magsaysay Lines Inc. and FIM Holdings HK, Ltd. emerged as winners of the privatization of NMC. It is part of Magsaysay Shipping & Logistics with several strategic business units directly under its management.
