LISTED hotel and resorts operator Discovery World Corp. said on Wednesday it is subscribing to additional stakes in its subsidiaries Lucky Cloud 9 Resort, Inc. and Discovery Fleet Corp. for a total consideration of P120 million to increase the working capital of the two firms.
DWC will subscribe to 104 million common shares of Lucky Cloud 9 and 16 million shares of Discovery Fleet at a price of P1 per share.
“The additional subscription shall increase DFC and Lucky Cloud 9’s working capital,” DWC said in a disclosure to the Philippine Stock Exchange.
DWC said DFC is engaged in the cruise business, offering full diving and non-diving programs from its voyages in the Philippines’ renowned dive sites, while Lucky Cloud 9 is seen to own real properties in Siargao for development into a resort.
The transaction will be made once the company secures the approval of the Securities and Exchange Commission (SEC) of DFC’s increase in authorized capital stock from P24 million to P60 million, as well as the Board of Directors’ nod for Lucky Cloud 9’s acquisition.
“The approval of the SEC for DFC to increase its authorized capital stock is required before the issuance of DFC shares to the Company,” Discovery World said.
Last June, the company announced the 100 percent acquisition of Balay Boracay Corp. in line with its vision to expand its resorts business. DWC subscribed to 800,000 shares of Balay with a par value of P1 apiece or equivalent to P800,000.
Balay Boracay is seen to own real properties in Boracay, Aklan, which will be used as a staff house of the employees of the company.
Incorporated in 1993 and formerly Southern Visayas Property Holdings Inc., DWC is primarily engaged in the hotel and resorts business through its brands Discovery Shores Boracay, Discovery Shores, Platitos Resto-Bar, Sands Lounge, Indigo Resto-Bar and Sunken Pool Bar.