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Megaworld cleared to hike capital stock

Posted on November 25, 2013 10:50:27 PM [ BusinessWorld Online ]

MEGAWORLD Corp. has bagged regulatory approval to increase its capital stock, paving the way for equity infusion from its parent Alliance Global Group, Inc., the listed property developer said in a disclosure yesterday.

“The Securities and Exchange Commission (SEC) approved the increase in Megaworld’s capital stock from P30.20 billion divided into 30.14 billion common shares with par value of P1.00 per share and six billion preferred shares with a par value of P0.01 per share, to P40.20 billion divided into 40.14 billion common shares with a par value of P1.00 per share and six billion preferred shares with a par value of P0.01 per share,” the disclosure read.

Alliance Global last May announced that it would subscribe to 2.5 billion common shares from a proposed P10-billion increase in Megaworld’s authorized capital stock.

The shares will be bought at P4.29 per share or P10.725 billion in total, Megaworld had said.

Alliance Global owned 39.16% of Megaworld as of end-September, but information on its holding after this transaction was not readily available.

The subscription should also boost the stock price of the real estate developer, Alliance Global had said previously.

Megaworld reported a P6.55-billion net income as of end-September, up 14.91% from P5.70 billion in the same nine months last year. This as revenues jumped 11.87% to P26.68 billion from P23.85 billion, while cost and expenses rose 10.85% to P20.13 billion from P18.16 billion.

The company booked P56 billion in reservation sales, up by 20% from P46.5 billion in the same period last year.

Megaworld Group launched 18 projects during the nine-month period.

Megaworld itself had 10 projects: Tower 2 of Eastwood Avenue in Eastwood City; Uptown Parksuites in Uptown Bonifacio; Bayshore Residential Resort Phase 2; Tower 1 of Florence McKinley Hill; Tower 1 of Manhattan Plaza in Araneta Center in Quezon City; Tower 1 of One Manchester Place in The Mactan Newtown in Cebu and three towers of One Madison Place as well as boutique hotel lots in the Iloilo Business Park. Empire East Land Holdings, Inc. under the Megaworld Group launched five towers: Tower 3 of San Lorenzo Place in Makati City; Tower 3 of Kasara Urban Residences and Tower 6 of The Rochester in Pasig City, and cluster 23 and 33 of Cambridge Village in the Pasig-Cainta, Rizal area. Suntrust Home Developers, Inc., meanwhile, had three projects, namely: Suntrust Kirana in Pasig City and Suntrust Riva Bella and Suntrust Ecotown in Tanza, Cavite.

In the same comparative periods, rental income from business process outsourcing office developments and malls jumped 20% to P4.34 billion from P3.61 billion.

By end of this year, the company expects to have “more than half a million” square meters of net leasable area for office space in its portfolio with the completion of towers 3 and 4 of McKinley Science Hub; the Venice Corporate Center; as well as towers A, B, and C, of 8 Campus Place Tower, which are all located in the McKinley Hill township, Megaworld said early this month.

Megaworld has programmed P35 billion in capital expenditure for this year, higher than P25 billion last year, as it plans to launch more residential and office projects.

Its shares lost 11 centavos or 3.23% to close P3.30 apiece yesterday from P3.41 each last Friday. -- Cliff Harvey C. Venzon            

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