By Zinnia B. Dela Peña (The Philippine Star) Updated January 26, 2011 12:00 AM
MANILA, Philippines - Fil-Estate Land Inc. (FELI), now controlled by Alliance Global Group Inc. (AGI) of real estate tycoon Andrew Tan, has obtained the approval of Securities and Exchange Commission to raise its authorized capital stock from P5 billion to P10 billion.
In a disclosure to the Philippine Stock Exchange, FELI said the new capitalization now consists of 10 billion common shares with a par value of P1.
Publicly-listed holding firm AGI subscribed and paid the entire P5 billion capital hike equivalent to nearly 60 percent of FELI.
With the subscription, AGI’s Tan is now the chairman and president of FELI which will be renamed Global Estate Resorts Inc.
The group of businessman Robert John Sobrepena retained a fifth of FELI which used to be a premier real estate developer until the 1997 currency crisis gripped Asia.
AGI’s purchase of a majority stake in FELI is expected to boost the latter’s bid to regain its strong presence in the real estate industry and allow it to pursue projects that had been hampered by liquidity problems.
The deal will allow AGI to develop more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots which include Tagaytay and Nasugbu, Batangas.
It will also pursue the Newcoast Station project which will serve as a catalyst for the growth of the Boracay tourism industry.
AGI is an active player in a wide range of industries from tourism and real estate development to food and beverage, quick-service restaurants and hotels and resorts development. Its main units include Travellers International Hotel Group, Megaworld Corp., Emperador Distillers Inc. and the McDonalds franchise.