PHILIPPINE REAL ESTATE and RELATED NEWS in and around the country . . .

8990 Holdings raising capital via backdoor listing

By Jenniffer B. Austria | Posted on May. 14, 2013 at 12:01am
[ ] 
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.”

real estate central philippines
Copyright ©2008-2018