Amid plans to acquire more properties, the holding company of Andrew Tan’s business empire is subscribing to P2.5-billion worth of shares that forms part in the freshly fueled P10-billion capital of its property arm.
A disclosure to the Philippine Stock Exchange on Friday showed that the board of listed property giant, Megaworld Corp., has given its go-signal to the P10-billion increase in the firm’s authorized capital stock.
The P10-billion increase consists of 10 billion shares with a par value of P1 per share.
The disclosure further specified that of the 10 billion shares, 2.5 billion shares shall be subscribed by its parent firm, Alliance Global Group Inc. (AGI), at the price of P4.29 per share, for a total subscription price of P10.725 billion.
According to Megaworld, the amount that was subscribed by its parent firm represents a premium of 5 percent over its 30-day volume weighted average price.
“The company intends to use the subscription proceeds for project development, land acquisition, investments and general corporate purposes,” Megaworld said.
AGI, in a separate disclosure to the exchange, also said that it sees Megaworld stock as undervalued and remains confident that the real-estate market will continue to expand from strong demand fueled by a robust Philippine economy.
The disclosure further mentioned that 25 percent of the subscription price shall be payable upon signing of the subscription agreement, while the balance shall be payable upon approval by the Securities and Exchange Commission of the increase in capital stock.
Meanwhile, Megaworld recently launched its third residential condominium cluster to rise in its 20-hectare mixed-use development in Cebu, The Mactan Newtown.
The company reported that it has started pre-selling the 18-storey first tower of One Manchester Place this month. This brings the total number of residential buildings in the township to eight.
Madelaine B. Miraflor