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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