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Anchor Land board clears fund-raising via preferred share sale

Published : Wednesday, August 17, 2011 00:00 [ ]

ANCHOR Land Holdings Inc. obtained board approval to hold a stock rights offering to finance its land banking initiatives.

In a disclosure to the Philippine Stock Exchange, Anchor Land said it would hold a rights offering of one preferred share for every common share held by existing shareholders as of September 15 at P1 per preferred share.

Proceeds from the rights issue would fund the minimum paid-up capital requirement for the increase in preferred shares, while the declared common stock dividends will be used to fund the minimum paid-up capital requirement for the common capital stock hike.

Last month, minority shareholders ratified the board approval to increase its authorized capital stock from P1 billion to P3.6 billion, increasing its common and preferred shares by P1.3 billion each.

In May, the property developer declared a stock dividend of one common share per outstanding common share held by the stockholders as of a still undetermined record date pending the approval of the Securities and Exchange Commission.

Anchor Land approved shareholder LTC Prime Holdings Corp.’s take up of any unsubscribed portion of the rights issue.

“The proceeds from the rights issue shall be used by the company to carry out its growth initiative thru land banking,” Anchor Land said.

It expects revenues to hit the P3-billion level this year, a 12.17-percent improvement from the P2.66 billion generated in 2010.

The company plans to launch seven projects this year—ranging from commercial developments to luxury residential suites—and expand its mid-rise condominium project at the Aseana Business Park in ParaƱaque City.

Its wholly owned subsidiary Posh Properties Development Corp. will beef up its land bank in the business park after announcing it will spend P434.87 million each for the acquisition of two prime lots in the area.

Anchor Land shares surged to P19.50 on Tuesday from P18.12 each on Monday.

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