The property business of tycoon Andrew Tan, Megaworld Corp., has acquired affordable housing developer, Suntrust Properties, from its two subsidiaries.
Megaworld reported through its filing with the local bourse that it has acquired the stake of Empire East Land Holdings Inc. and Suntrust Home Developers Inc. in Suntrust Properties.
This acquisition will make Suntrust Properties a wholly owned subsidiary of Megaworld.
A total of 393 million shares of Suntrust Properties were acquired by Megaworld at book value for a total acquisition price of P589 million.
Megaworld owns 42.48 percent of Suntrust Home and 78.59 percent of Empire East.
Several weeks ago, the holding company of Tan’s business empire subscribed to P2.5-billion worth of shares that forms part in the freshly fueled P10-billion capital of Megaworld. This is amid the group’s plans to acquire more properties.
A previous disclosure to the Philippine Stock Exchange showed that the board of Megaworld 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 a 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. at the price of P4.29 a share, for a total subscription price of P10.725 billion.