Posted on
June 21, 2013 08:05:16 PM [ BusinessWorld Online ]
TYCOON Andrew
L. Tan is moving to consolidate his real estate assets under Megaworld Corp.,
based on a company disclosure on Friday.
The move
comes barely a month after the SM Group announced that it was merging its
property assets under SM Prime Holdings, Inc., creating the largest property
firm in terms of market capitalization.
"Megaworld
seeks to consolidate the real estate businesses of its affiliates under the
Megaworld brand to better capitalize on real estate opportunities and capture
the expected growth momentum of GERI (Global-Estate Resorts, Inc.), ELI (Empire
East Land Holdings, Inc.) and Suntrust Properties, Inc. within the next five
years," the company said.
Megaworld
said it subscribed on Friday to 2.5 billion shares from Global-Estate at par
value of P2.26 per share for a total value of P5.65 billion.
Of the total
subscription, 25%, worth P1.4125 billion, will be paid on June 26, while the
remaining P4.2375 billion will paid upon the Securities and Exchange
Commission's approval of the transaction, the firm said.
In a separate
disclosure, mixed-use developer Empire East said 1.2 billion of its shares had
been acquired by Megaworld at P1.05 per share. The total price of P1.26 billion
will be paid on June 26.
Last week,
Megaworld acquired 100% of Suntrust, for nearly P600 million. Suntrust has
housing developments in Cavite, Laguna and Manila.
Officials
were not immediately available for additional details, such as Megaworld's
ownership in Global-Estate and Empire East, after the transactions.
The SM Group
announced last month that mall builder SM Prime Holdings, Inc. will be the
holding company of the Sy family's real estate firms SM Development Corp., SM
Land, Inc. and other hotels and convention centers owned by the family.
Meanwhile,
Megaworld's net profit stood at P1.82 billion in the first quarter, up by
15.19% from P1.58 billion in the same period last year.
Revenues grew
by 16.43% to P8.15 billion from P7.00 billion in the same comparative periods.
Costs and
expenses increased by 18.96% to P6.33 billion from P5.32 billion year-on-year.
Shares of
Megaworld dropped 21 centavos or 5.93% to P3.33 apiece on Friday. -- Cliff
Harvey C. Venzon
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