By Jenniffer
B. Austria | Posted on May. 14, 2013 at 12:01am
[
manilastandardtoday.com ]
Property
developer 8990 Holdings Inc. will raise fresh capital to finance the expansion
of mass housing brand Deca Homes via backdoor listing.
The
developer, which owns listed company IP Converge Data Center Inc., executed a
series of transactions last week that set the stage for its backdoor listing.
Jesus
Atencio, president and chief executive of 8990 Holdings, said the company would
use proceeds from the capital-raising program to acquire new properties to
boost landbank and expand its product offerings.
The
Philippine Stock Exchange suspended the trading of IP-Converge last week after
it sold 3.84 billion shares of the 8990 Group of Companies.
IP Converge
in return approved the issuance of 3.97 billion common shares of the company at
par value to the major shareholders of the 8990 group.
The PSE said
the transactions undertaken by IP Converge was covered by the exchange’s rules
on backdoor listing.
8990 Holdings
recorded a net profit, after tax, of P1.71 billion in 2012. Atencio said the company was confident it
would eclipse the previous year’s performance, as the first-quarter net income
was expected to reach P700 million.
“Such results
clearly indicate an upward trend that will bring us to a higher level of record
profits this year, wherein our commitment to provide affordable mass housing
under our Deca Homes brand shall continue to be the principal driving force of
this growth,” Atencio said.
“With our
acquisition of 8990 companies, our focus on the mass housing sector remains
clear and firm,” he added.
Deca Homes is
one of the largest and most profitable low-cost real estate companies that
developed 51 subdivisions, with more than 41,000 housing units turned over to
date.
The developer
has 10 ongoing residential projects in Angeles City, Cavite, Iloilo, Cebu and
Davao, while also managing two wakeboard parks—Deca Wake Park Davao and Deca
Wake Park Clark.
A backdoor
listing is deemed to occur “when a listed company acquires or merges or
combines with an unlisted company, or when a listed company is acquired by,
merged or combined with an unlisted company, and which acquisition, merger, or
combination results in a substantial change in the business, membership of the
board of directors, or voting structure of the listed company.”
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