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Empire East converts preferred stocks into common shares

Posted on August 08, 2012 09:29:11 PM [ BusinessWorld Online ]

PROPERTY FIRM Empire East Land Holdings, Inc. has converted a block of preferred shares into common shares ahead of a planned stocks rights offer.

The firm converted 285,723,080 series “B” preferred shares into same number of common shares.

“[The conversion] resulted into 10,908,215,404 issued common shares inclusive of treasury shares and 10,780,959,333 outstanding common shares,” the firm said in its disclosure.

Conversion price was at P1 per share.

The firm could not be reached for further details.

The conversion comes after Empire East approved a preemptive stock rights offer on May 5, wherein the company will offer one new share for every four shares held by existing stockholders.

The stock rights offer will be used to raise funds for land banking, project development, and other general corporate purposes.

Proceeds from the stock rights offer, expected to amount to approximately P2.6 billion, will be used to fund Empire East’s estimated P3-billion capital budget this year.

The stock rights offering is expected to commence sometime in the third quarter, earlier reports stated.

Its parent firm Megaworld Corp. has pledged to buy any remaining shares unsold after its stock rights offer.

On July 16, Empire East inked a joint venture with the Japan-based Okada Group for the development of a P45-billion upscale condominium complex in the Bagong Nayong Pilipino Entertainment City, firming up its foray into luxury property development.

It will assume majority stake in the Tiger Resort Leisure and Entertainment, Inc. and Eagle 1 Landholdings, Inc.

The developer is also one of many firms interested in the 120-hectare, state-owned Food Terminal, Inc. agri-industrial complex in Taguig City that is slated for bidding next month.

Shares of Empire East were unchanged at 86 centavos each yesterday. -- Emilia Narni J. David

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