Vol. XXI, No. 241 [ BusinessWorld Online ]
Wednesday, July 9, 2008 | MANILA, PHILIPPINES
LISTED HORSERACING operator Philippine Racing Club, Inc. (PRCI) has bought more shares of subsidiary JTH Davies Holdings, Inc. using a prime property in Makati City as payment.
In separate disclosures to the Philippine Stock Exchange, the companies said the property-for-share swap deal had been approved by their boards. PRCI will exchange the Makati property for 795 million shares of JTH Davies.
In an interview, JTH Davies Corporate Information Officer Elizabeth M. Guerrero said the company would use the property for real estate development.
"The company plans to pursue this after it has secured all pertinent documents," Ms. Guerrero said, but declined to give more details.
Earlier this year, PRCI announced a plan to raise funds by selling more shares to stockholders to speed up the transfer of its Makati-based racetrack to Cavite.
The move came after PRCI was barred from pursuing a property-for-share swap with JTH Davies, where PRCI holds 98.19%, after minority shareholders obtained a restraining order from a Makati regional trial court.
Minority shareholders argued that PRCI should not swap a P12-billion racetrack property for shares in a company worth P25 million. — Kristine Jane R. Liu
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