TKC Metals Corp. plans to invest in information technology businesses and broadband internet, as well as renewable energy after it exits steel manufacturing.
TKC said in a disclosure to the stock exchange the company had conducted feasibility studies on the planned new ventures. But the company is re-evaluating the studies and the timing of new businesses because of the pandemic.
The company also said it would remain a holding company with interests in businesses outside the metal industry. The company plans to complete the sale of all assets before the end of the year.
The proposed sale will include the stake in major subsidiaries, namely Billions Steel International Ltd. and its unit, Zhangzhou Stronghold Steel Works Co. Ltd (ZZ Strongholder), Treasure Steelworks Corp. and (TSC) Campanilla Mineral Resources Corp.
ZZ Stronghold manufactures and distributes various types of steel pipe products in China. It started in March the second phase of plant upgrade and teamed up with third-party SK Group over fabrication, coating and galvanizing activities set to be in operations in 2022.
TSC, on the other hand, has suspended its production of steel billets in Iligan City since 2013.
TKC said it plans to secure the fair value of its assets.
“The disposition of the non-performing assets of TKC will help the corporation end the years of unprofitable operations which (have) prompted the corporation, as the parent company, to support the operations of its subsidiaries through advances which the latter have not been able to return after so many years,” TKC said.
“Being in a more positive financial state will hopefully put the corporation in a better position to pursue other lines of businesses,” it added.
The company will set conduct a special stockholders’ meeting on December 30, 2021 to obtain shareholders’ approval of the planned action.
TKC registered a net loss of P113 million in the first nine months of the year, slightly better compared to the net loss of P124 million in the same period last year.