A BROWN Co., Inc. said on Wednesday that its board of directors authorized the firm to enter into a joint venture with an operator of zero-emission buses to manage an electric shuttle service in Cagayan de Oro City (CDO).
The listed holding firm told the stock exchange that the tie-up with GET Philippines, Inc. will “create, promote, operate and manage the ABC Electric Shuttle Service as a clean, efficient, modern, and green mass transport system.”
A Brown described GET as a social enterprise specializing in zero-emission electric buses, including a fleet and passenger management ecosystem that provides “safe, efficient, and sustainable” transit systems.
Under their agreement, GET will set up and incorporate a joint venture company that it will jointly own with A Brown. The new company will initially own 10 Community Optimized Managed Electric Transport (COMET) electric vehicles deployed for the project.
The joint venture will be responsible for the provision, management, service, maintenance, and operation of the COMET fleet for the electric shuttle service in Cagayan de Oro.
It will also offer the COMET electric vehicles “as an effective marketing tool and platform for media and transit advertising for third parties,” A Brown said. The shuttle service will make use of GET’s transport application GETPASS as a fleet and passenger management and monitoring system.
Upon the new company’s incorporation, its outstanding capital stock will be P45 million corresponding to 45 million shares. GET will own 100% of the outstanding capital stock.
A Brown will pay P22.5 million to GET as advanced payment for the shares in the joint venture. GET will then transfer ownership of 22.5 million shares to A Brown, creating a 50% equity share in the company.
A Brown is primarily engaged in real estate development. Its subsidiaries are in power generation, manufacturing, and trading of palm oil and other palm products.
On the stock market on Tuesday, its shares closed higher by P0.05 or 6.7% to end at P0.80 apiece. — Adrian H. Halili