Posted on February 17, 2011 10:22:17 PM [ BusinessWorld Online ]
GOKONGWEI-led Robinsons Land Corp. has decided to conduct a two-for-one stock rights offering to raise more than P13 billion in fresh capital.
This replaces the earlier decision to conduct a 1:3 rights offer which the firm’s board approved in November.
“On Feb. 16, the board of directors of Robinsons Land ratified and confirmed the stock rights offering of the common shares of the corporation with a par value of P1 per share,” the company told the local bourse yesterday.
Under the plan for the stock rights offering, the property giant will sell up to 1.364 billion common shares. The shares up for sale will come from a planned increase in authorized capital to P8.3 billion from the current P3 billion.
“The offer price shall be P10 per offer share,” Robinsons Land said.
Terms and conditions for the offer still needed to be determined by the company, it added.
Higher authorized capital will give the property developer the flexibility for future expansion.
Shareholders still need to approve the capital hike. A special meeting has been called on Feb. 23 for this purpose.
Robinsons Land, the property arm of listed JG Summit Holdings, Inc., is into shopping malls, hotels and office space leasing.
Shares in the property developer -- whose profits surged by almost a quarter to P1.016 billion in the first quarter of its fiscal year that will end in September -- closed P0.18 higher at P13.10 each yesterday.
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