UNIVERSAL Robina Corp. (URC) said its board of directors has approved a proposal to form a joint venture (JV) company with Greencycle Innovative Solutions, Inc. for plastic waste management and collection.
In a regulatory filing on Tuesday, URC said its board greenlit the plan on Monday, pending approval from the Securities and Exchange Commission.
“The establishment of the JVCo (joint venture company) is subject to the parties being able to secure the requisite regulatory approvals and corporate approvals,” URC said.
The joint venture company is targeted to start commercial operations by September, it added.
Once approvals are obtained, the joint venture plans to implement an integrated operation to manage plastic waste by processing materials into reusable and recyclable products.
The initial paid-in capital for the joint venture is set at P27 million, with URC holding a majority stake of 75% and Greencycle holding 25%.
“Such ownership ratio shall be maintained for all types of financial capital undertakings,” URC said.
URC is a Gokongewei-led food and beverage manufacturer company; while Greencycle is an industrial aggregator, focusing on waste management, recycling, processing, and converting of waste materials into viable energy sources or materials.
On Thursday, shares in URC went up by P3.60 or 3.22% to end at P115.50 apiece at the stock exchange. — Ashley Erika O. Jose