TKC Steel Raising $1B For Expansion
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 22:25:00 02/15/2010

Filed Under: Metals & Minerals, Iron & Steel, Investments, Economy and Business and Finance
MANILA, Philippines--TKC STEEL CORP. IS SEEKING TO raise up to $1 billion in funds to finance its ongoing expansion program in the country.
In a disclosure to the Philippine Stock Exchange yesterday, the country’s only publicly listed steel company said it has appointed Pricewaterhouse Coopers Financial Advisors Inc. to lead the fundraising exercise.
Under the terms of the agreement, Pricewaterhouse as project management adviser will identify prospective strategic partners or investors for TKC Steel and prepare a work program for the fundraising effort.
Proceeds from the fundraising exercise will be used “to undertake backward integration activities, including but not limited to acquisition of offshore/onshore mining interest for iron ore to be used as raw material feedstock for the blast furnace project of Treasure Steelworks Corp.”
TKC Steel subsidiary Treasure Steelworks’ blast furnace project in Iligan City is almost complete, the disclosure stated.
The fundraising program, the company said, was also “envisioned to provide the investment environment for further expansion of the steel manufacturing and the mining industry sectors.”
The company aims to have the biggest integrated steel manufacturing facility in the country.
Originally incorporated in 1996 as SQL Wizard Inc., TKC Steel changed its primary purpose in 2007 from information technology to a holding company engaged in the manufacture and distribution of steel products through subsidiaries Treasure Steelworks and Zhangzhou Stronghold Steel Works Co. Ltd.
Treasure Steelworks manufactures steel billets, while ZZS produces various types of steel pipes, which are distributed and sold to China and other export markets.