The Philippine Stock Exchange has
approved the P2.69-billion stock rights offering of Empire East Land Holdings
Inc., the property firm which teamed up with Japan’s Okada Group to build a
luxury residential project in Entertainment City Manila.
Shareholders of Empire East will be
entitled to purchase one right share for every four common shares they own at
an offer price of P1 per share. The offer period will be on Oct. 8 to 12 while
the shares will be listed in the PSE on Nov. 29.
Megaworld Corp., the major controlling
shareholder of Empire East, committed to subscribe to its entitlement shares
and to any unsubscribed rights shares that will not be taken up during the
offer period.
The property firm tapped BDO Capital
and Investments Corp. as the underwriter for the offering.
Empire East signed a joint venture
agreement with Okada Group’s Tiger Resort Leisure and Entertainment Inc. and
Eagle 1 Landholdings Inc. last month to take the lead with a majority stake in
the development of a 12.95-hectare luxury residential resort condominium
project in Entertainment City.
The high-end resident project will
have more than 25 residential towers in several phases. Development cost is
expected to reach P45 billion.
The company earlier agreed to increase
its authorized capital stock to P33.4 billion from P23.4 billion.
Empire East reported a net income of
P60.4 million in the first half, up 12 percent from P54 million posted in the
same period last year.
Consolidated revenues also increased
21 percent to P1.15 billion from P954 million recorded a year ago, as real
estate sales climbed to P712 million from P470 million during the period.
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