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Megaworld issues P3-b warrants

By Jenniffer B. Austria | Posted on October 06, 2012 | 12:01am |
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Alliance Global Group Inc. and its wholly-owned subsidiary New Town Land Partners Inc. exercised their right to buy 3.071 billion Megaworld warrants at P1 per share.

A warrant entitles the holder the right to buy securities at a fixed price.

Alliance Global said in a disclosure to the stock exchange the transaction was valued at P3 billion.

Megaworld, in 2009, entitled shareholders who participated in the P5.1-billion stock rights offering to subscribe to bonus detachable warrants.

Under the plan, Megaworld will give four warrants to every five existing common shares at no cost to all those who subscribed to the rights offering. The warrants will then entitle holders to buy one new common share of Megaworld for every bonus warrant held at an exercise price of P1 per share.

The detachable warrant may be exercised after two years from the issue date or until June 2015.

Megaworld said it expected to raise P4.1 billion in net proceeds, assuming all warrants were exercised.

Proceeds from the fund-raising activity were allotted to finance its capital expenditures for the period 2012 to 2015.  Megaworld is the property unit of Alliance Global, which is the listed holding company of tycoon Andrew Tan.

Megaworld’s core net income jumped by 15 percent to P3.7 billion in the first half from P3.2 billion posted in the same period last year.  Consolidated revenues rose 12 percent to P15.4 billion, on the back of continued strength of its residential estate sales and rental income from retail and office buildings.

Its net cash position also remained strong with cash and cash equivalents totaling P29.1 billion as of end-June 2012.

The company is the leader in office development with 500,000 square meters of office space.

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