Posted on February 17, 2012 07:20:42 PM [ BusinessWorld Online ]
LISTED DEVELOPER Century Properties, Inc. bared on Friday details of an earlier disclosed private placement from a Dutch investor, noting that proceeds will be used to bankroll working capital and land acquisitions.
The upscale property firm said it plans to raise P2.33 billion in proceeds from the offshore placement and subscription of around 1.33 billion common shares priced at P1.75 apiece by Netherlands-based pension firm APG Strategic Real Estate Pool N.V.
Moreover, the transaction will hike Century Properties’ minimum public float to 17.5% from 6.4%, meeting the Philippine Stock Exchange’s (PSE) 10% minimum public float rule imposed on all listed firms.
Half of the subscription proceeds will be earmarked for working capital purposes, while the remaining balance will be used to bankroll land acquisitions, Century Properties noted.
UBS AG will serve as sole global coordinator and book runner for the deal, while UBS AG and Macquarie Capital (Singapore) Pte. Ltd. will serve as joint lead managers.
Century Properties said it will implement the transaction "shortly," but did not specify the timetable.
The PSE halted the trading of Century Properties’ shares Friday afternoon until Feb. 20, Monday, so investors can digest the new information.
Century Properties, a high-rise developer with more than 40 projects in its total portfolio as of last year, has already completed a total of over 22 buildings and 720 homes, according to its Web site.
It debuted on the PSE last September by way of "backdoor" listing, replacing energy firm East Asia Power Resources Corp.
Century Properties’ shares plunged by 12.92% to P1.82 when trading was suspended on Friday from Thursday’s closing price of P2.09. -- F.J.G. de la Fuente
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