Posted on
July 25, 2013 11:13:12 PM [ BusinessWorld Online ]
GLOBAL-ESTATE
Resorts, Inc. has bagged regulatory approval to double its capital stock, the
company said in a disclosure yesterday, paving the way for infusion of
additional capital from affiliate Megaworld Corp.
Global-Estate
said the Securities and Exchange Commission (SEC) on July 24 approved its bid
to hike its authorized capital stock to P20 billion from P10 billion,
consisting of shares with par value of P1 each.
The company
had earlier said 2.5 billion shares from the increase will be subscribed to by
Megaword at P2.26 apiece, giving Global-Estate around P5.56 billion in fresh
funds.
It was not
immediately known how much stake Megaworld will have in Global-Estate after the
transaction.
Megaworld’s
equity infusion in Global-Estate is part of the move by Alliance Global Group,
Inc. Chairman Andrew L. Tan to consolidate his real estate assets under the
flagship property unit Megaworld.
Last month,
Megaworld acquired 1.2 billion more shares in mixed-use developer Empire East
Land Holdings, Inc. at P1.05 per share for P1.26 billion.
Megaworld in
June also acquired 100% of Suntrust Properties, Inc., for nearly P600 million.
Suntrust has housing projects in Cavite, Laguna and Manila.
Megaworld, in
a disclosure last month, said it “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), ELI (Empire East Land Holdings) and Suntrust
Properties within the next five years.”
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.
In the same
comparative periods, revenues grew by 16.43% to P8.15 billion from P7.00
billion, while cost and expenses increased by 18.96% to P6.33 billion from
P5.32 billion.
Yesterday,
shares of Global-Estate lost two centavos or 1.16% to close at P1.71 apiece
from P1.73 on Wednesday, while those of Megaworld shed one centavo or 0.28% to
end at P3.55 each from P3.56. -- Cliff Harvey C. Venzon
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