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Yuchengco holding firm to borrow P1.5 billion

Posted on July 21, 2013 09:58:33 PM [ BusinessWorld Online ]
HOUSE of Investments, Inc., the holding firm of the Yuchengco family, plans to borrow P1.5 billion to invest in an affiliate, the company said in a disclosure on Friday last week.
The listed firm said shareholders, in their meeting that day in Makati City, approved the firm’s plan to “draw down up to P1.5 billion loan to fund the purchase of 10% of RCBC Realty Corp.”
The company did not elaborate where it will get the loan, but as of end-March, House of Investments had available credit facilities with banks totaling some P4.6 billion, according to the first quarter financial report it submitted to the Philippine Stock Exchange.
A joint venture between RCBC Land, Inc. and Reco Rizal Investment Corp., RCBC Realty owns RCBC Plaza, a two-tower office development in Makati City, according to the Web site of the Yuchengco Group of Companies.
In the same meeting, the company said shareholders also approved:
• declaration of P53.40-million cash dividends with a record date of Aug. 16 and payable on Sept. 9;
• declaration of P2.45-million cash dividends to preferred shareholders covering the April-June period, with record date of Aug. 16 and payable on Sept. 4; and
• redemption of 25.67 million preferred shares at 40 centavos apiece totaling P10.27 million, with record date on Aug 16. and payable on Sept. 6.
The company’s net income slightly grew by 0.09% to P416.06 million in the first quarter from P415.70 million in the same three months last year.
In the same comparative periods, revenues slid 4.12% to P4.65 billion from P4.85 billion, while cost of sales and services fell by a bigger 6.19% to P3.79 billion from P4.04 billion.
The company controls listed construction firm EEI Corp., listed school operator iPeople, Inc., and operates Honda and Isuzu car dealerships.
The company in May said it was optimistic on this year.
House of Investment said growth of the construction business is expected “to be sustained by the construction of the business process outsourcing and mining industries, tourism, and residential projects targeted towards overseas Filipino workers.”
On the education business, the company said the second semester is “always stronger revenue-wise.”
On the car dealership business, the company had said “the prospect of product updates will maintain keen customer interest in buying autos.”
Shares of the company ended Friday’s trading at P7.39 apiece, unchanged from their Thursday finish. -- Cliff Harvey C. Venzon     
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