Vol. XXII, No. 138 [ BusinessWorld Online ]
Friday, February 13, 2009 | MANILA, PHILIPPINES
ANDREW TAN-led holding company Alliance Global Group, Inc. will subscribe to the shares that its property arm Megaworld Corp. will be selling to toughen its capital base.
In a disclosure yesterday, Alliance Global said its board had approved the subscription to the preemptive right offer of Megaworld and would likewise subscribe to all the shares not taken up by other shareholders.
The holding company said it would shell out P2.4 billion to P5.1 billion for the payment of the shares, depending on the results of the right offer. The money will be taken from the P9.95-billion proceeds that Alliance Global had raised through its foreign offering last year.
It cited prospects for the property market and the sustainability of Megaworld’s business, which focuses on the mid-income residential and business process outsourcing markets.
Claire S. Quiray of Accord Capital Equities Corp. said acceptance to the offering would be muted because of the crisis. "Investors do not want to part with their money. They want to remain liquid as much as possible," she said. — Kristine Jane R. Liu
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