By Richmond Mercurio (The Philippine
Star) | Updated January 9, 2015 - 12:00am
MANILA, Philippines - Suntrust Home
Developers Inc., an associate firm of Megaworld Corp., is looking to raise
about P6 billion from a planned stock rights offering to fund the acquisition
of more properties.
In a disclosure to the Philippine
Stock Exchange, Suntrust said it intends to offer 5.265 billion common shares
at P1 each.
The firm said the rights shares would
be issued from a P20-billion increase in the company’s authorized capital stock
approved by its stockholders in November last year.
Suntrust did not disclose the offer
period for the shares, but said shareholders would be entitled to subscribe to
2.5 offer shares for every one share owned.
BDO Capital & Investment Corp. has
been tapped as underwriter for the transaction.
Megaworld, in a separate disclosure,
said it has committed and undertaken to subscribe to its rights offer
entitlement and to any rights shares not taken up by other shareholders of
Suntrust.
“This will ensure that the 5.625 billion
shares underlying the rights offer will be fully subscribed,” said the property
giant, is a substantial shareholder of Suntrust with a 42.48-percent interest.
Suntrust president Ferdinand B. Masi
earlier said proceeds of the rights offer would be used primarily to finance
acquisition of properties.
____________________________________________________________
