By Jenniffer B. Austria | Nov. 18, 2014 at 11:30pm
Suntrust Home Developers Inc., a listed property management company, said Tuesday its shareholders approved a P20-billion increase in authorized capital stock to P23 billion from P3 billion, as the company ventures into real estate development.
Suntrust said it would hike the capital to P23 billion, divided into 23 billion common shares with a par value of P1 apiece, from current P3 billion, divided into 3 billion common shares with a par value of P1 apiece.
The capital hike will be funded by the rights offering where existing shareholders would be entitled to subscribe to 2.5-offer shares, for every one share owned.
Suntrust president Ferdinand Masi said during the annual stockholders’ meeting the company planned to use the proceeds from the planned stock rights offering to finance acquisition of properties.
“The company intends to engage in real estate development and is currently considering properties for acquisitions,” Masi said.
Suntrust was originally incorporated on Jan. 18, 1956 under the name Ramie Textiles Inc. and was originally authorized to engage in the manufacturing and sale of all types of ramie products. It changed its name from Fairmont Holdings to the present name in 2002.
The company currently does not have any business operations, but its subsidiary First Oceanic Property Management Inc. is involved in property management of residential and office buildings and private estates.
FOPMI also owns a 100-percent stake in CityLink Coach Services Inc., which provides transport and shuttle rental services in Metro Manila and nearby provinces.