Posted on
January 18, 2013 07:47:17 PM [ BusinessWorld Online ]
A
HONG-KONG-BASED investment group has subscribed a 33% stake in Manila Jockey
Club, Inc. affiliate MJC Investments Corp., giving the listed company capital
to pursue its first project, a proposed tourism complex in Manila, MJC
Investments said in a statement on Friday.
"MJC
Investments, whose business focus is in the hotel, tourism and leisure sectors,
today [Jan. 17] approved at a special meeting of its board of directors, the
subscription to common shares of MJC Investments with a lock-up period of two
years by a Hong Kong consortium through its Philippine corporations," the
statement read.
The Hong Kong
consortium, which holds a global investment portfolio, is led by Cheah Teik
Seng, managing director of Kuala Lumpur-based financial services firm ECM Libra
Financial Group Bhd, MJC Investments said.
Manila Jockey
Club, MJC Investments’ parent, will maintain control of MJC Investments
following the investment, which is worth P450 million, the statement added.
"The
Hong Kong consortium brings a unique level of world-class, global experience
and expertise to MJC Investment’s business and further empowers our ambition to
emerge as significant player in the Philippines’ rapidly growing tourism
industry," Alfonso R. Reyno, Jr., MJC Investments chairman and chief
executive officer, said in the statement.
Proceeds from
the Hong Kong group’s investment will be earmarked for the development of MJC
Investments’ maiden project in Manila.
"The
transaction provides MJC Investments with the resources to undertake the
construction of its first project, a five-star hotel, tourism and entertainment
hub located on a 7,500-square meter site at the San Lazaro Tourism and Business
Park in Sta. Cruz, Manila, which is already home to a high-end residential
condominium project (Celadon Park) jointly developed by Ayala Land, Inc. and
MJC Investments, and the SM (City) San Lazaro mall," the statement read.
Upon
completion, MJC Investments’ tourism and entertainment hub is expected to have
160 suites, a 1,000-person capacity ballroom, over 5,000 square meters of
themed event spaces, and over 1,000 parking spaces. The project is under
construction and targeted to start full operations by 2015.
Meanwhile,
trading of MJC Investments’ shares were halted from 9 to 10 a.m. on Friday in
line with bourse rules on the issuance of new voting shares "amounting to
at least 10% but not more than 35% of the total issued and outstanding capital
stock of the issuer," MJC Investments said in a separate disclosure on
Friday.
MJC
Investments was incorporated in 1955 as Aries Prime Resources, Inc., to engage
in mining. It ceased its mining business and shifted to being an investment
holding company in 1997 and eventually to a tourism and leisure firm in 2009.
The company
widened its nine-month net loss last year by 1,074.68% to P18.09 million from
P1.54 million in 2011 on the back of a surge in costs.
Interest and
other income from January to September rose by 20.00% to P1.26 million from
P1.05 million the year previous, while costs and expenses went up by 647.49% to
P19.36 million versus P2.59 million, year on year, largely due to project
construction costs.
Shares of MJC
Investments fell by 10 centavos or 1.40% to P7.05 on Friday from P7.15 last
Thursday. -- Franz Jonathan G. dela Fuente
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