By Jenniffer B. Austria | Posted on
October 06, 2012 | 12:01am |
[ manilastandardtoday.com ]
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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