Apollo Global seals purchase of 49% stake in Singapore-based firm
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Apollo Global seals purchase of 49% stake in Singapore-based firm

Apollo Global Capital Inc. has acquired 49 percent of Poet Blue Ocean Services Pte. Ltd. (PBO), which owns a vessel that will be used for its offshore mining activities.

Apollo Global Capital Inc. has acquired 49 percent of Poet Blue Ocean Services Pte. Ltd. (PBO), which owns a vessel that will be used for its offshore mining activities.

Using proceeds from its recently completed follow-on offering, APL executed a deal to purchase 490,000 shares of PBO at P1,453.022 per share for a total of P711.98 million.

PBO is a special purpose vehicle registered in Singapore in April 2017 to own MB Siphon 1, which is its only asset and which will be used for the offshore mining activities of APL subsidiary JDVC Resources Corp.

APL said the purchase price was based on the valuation of the MB Siphon I vessel by Cuervo Appraisers.

With its acquisition of a 49% stake in PBO, APL will effectively have two sources of revenues – 90.47 percent royalties from JDVC Resources, and 49 percent share of the charter fees to be earned by PBO.

JDVC aims to churn out 10,000 tons of magnetite iron ore per day in the country’s first, large-scale offshore mining operation.

” The two sources of revenues of the company and JDVC are expected to be sufficient in satisfying the cash requirements of the group and no further fund-raising is expected in the coming year,” APL said in a filing with the stock exchange.

APL raised P988 million from sale of 12.35 billion shares, priced at eight centavos apiece.

Weather permitting and once all the necessary environment protection equipment and ecologically balanced offshore mining protection gears have been purchased, the MV Siphon Vessel 1 is expected to start operations on or before April 30, 2022.

JDVC teamed up with nickel miner and restaurant magnate Frank Lao’s Kinetic Holdings Corp. to hunt for magnetite ore in its 4,990 hectare mining tenement in Cagayan.

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