Posted on 06:53 PM, October 15, 2010 [ BusinessWorld Online ]
Gotianun-led holding firm Filinvest Development Corp. is raising fresh capital by selling new shares, with its board of directors approving a 70% hike in authorized capital on Friday.
Filinvest raising funds through share sale
Gotianun-led holding firm Filinvest Development Corp. is raising fresh capital by selling new shares, with its board of directors approving a 70% hike in authorized capital on Friday.
In a disclosure, Filinvest Development said it had revised its articles of incorporation "to increase the authorized capital stock of the company from P10 billion to P17 billion."
There will be five billion new common shares with a par value of P1.00 each or a total of P5 billion, and two billion preferred shares with a par value of P1.00 per share or a total of P2 billion.
The board at the same time approved an "equity fund raising consisting of a placing a subscription transaction to be implemented in two concurrent stages," the company said.
Under the fund-raising scheme, ALG Holdings Corp., the parent of Filinvest Development, will sell not more than three billion shares in the listed holding firm. Filinvest Development will then issue new shares of the same amount and volume, which will be subscribed by to ALG Holdings.
The price of the share sale will be determined by a lead manager, which has yet to be appointed, Filinvest Development said.
The Philippine Stock Exchange will implement a one-hour trading halt on Filinvest Development shares at 9 a.m. on Monday. Both board approvals will have to be approved in a stockholders’ meeting on Nov. 25, Filinvest Development said.
The consolidated net income of Filinvest Development jumped by 94% to P1.9 billion in the first half as property unit Filinvest Land, Inc. reported an uptick in revenues.
Filinvest Development is also into banking and financial services through East West Banking Corp., and sugar operations through Pacific Sugar Holdings Corp., Davao Sugar Central Co., Inc., Cotabato Sugar Central Co., Inc., and High Yield Sugar Farms Corp.
Shares in Filinvest Development, which was incorporated in 1973 to consolidate real estate operations of the Gotianun family, were unchanged at P5.22 each on Friday.
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