MANILA - The private investment company of former trade minister Roberto V. Ongpin is nearing a deal to buy a controlling stake in listed mining firm Atok Big Wedge Co. Inc.

In a disclosure to the local stock exchange, Atok Big Wedge said it has received a “firm” proposal from holding firm Boerstar Corp., which plans to subscribe to all unissued shares or nearly 58% in the miner.

Boerstar will also launch a tender offer for shares held by minority stockholders allowing it to own 80 percent of Atok Big Wedge. Under the Securities Regulation Code, a company that buys at least 35% of a certain entity must offer to buy the shares held by other shareholders.

“The agreements are currently being reviewed by the respective counsels of each party and are expected to be finalized and signed soon,” said the mining company in a statement.

Under the deal, Boerstar will subscribe to unissued shares or 34.78 million shares at a par value of P1 apiece out of Atok Big Wedge’s total authorized capital of 60 million shares.

This will trigger a tender offer, meaning Boerstar will have to pay an additional P25.22 million for the same number of shares should existing stakeholders accept the offer.

At present, existing shareholders have already agreed to tender a minimum of 13.4 million shares.

Meanwhile, Atok Big Wedge said it may explore new investment opportunities beyond mining after the Boerstar acquisition.

“At present, [Atok Big Wedge] is a holding company with investments in mining interests. Part of the plan is the additional investments by the company in other mining assets as well as investments in oil and gas assets,” said Atok Big Wedge in a statement.

“Boerstar has presented its plan to cause the company to make several investments which they are presently evaluating and which will take effect after the forgoing subscription to and acquisition of the company’s shares are completed,” it added.

Boerstar holds a significant interest in the country’s most profitable miner Philex Mining Corp., where Ongpin sits as vice chairman.

Earlier, Philex, which has interests in oil and gas, respectively, through Pitkin Petroleum in Vietnam and the Sampaguita gas discovery in Palawan, said it may spin off these assets into a “separate initiative.”

“Philex is studying the possible structures or business options that could enable it to further enhance the strategic value of its oil and gas assets to the full advantage and its stockholders,” said the Philex in a previous statement.

Businessman Manuel V. Pangilinan is the current chairman of Philex.

Boerstar is a local holding company with significant investments in listed firms PhilWeb Corp. and ISM Communications Corp, both chaired by Ongpin.

In addition, Boerstar also holds a large interest in developer Alphaland Corp.

Boerstar is also beneficially owned and controlled by former finance undersecretary Eric O. Recto who, together with Ongpin, represents the Ashmore Group in the Philippines.