By Jenniffer B. Austria | Jul. 19, 2015 at 11:50pm [ manilastandardtoday.com ]
Home builder Vista Land & Lifescapes Inc. is increasing its authorized capital stock to P18 billion from P12 billion in preparation for a possible fund raising activity.
Vista Land said in a regulatory filing its board approved the increase in the company’s capital stock and called for a special stockholders’ meeting next month to clear the proposal.
“With the increased authorized capital stock, the company will be able to take advantage of any equity fund raising opportunities that may become available, as the company will now have sufficient authorized and unissued shares that it can issue in an expeditious and efficient manner,” Vista Land said.
Vista land set the special stockholders’ meeting on August 28, 2015.
The P18-billion capital stock will be divided into 17.9 billion common shares with a par value of P1 apiece and 10 million preferred shares with a par value of P0.01 per share.
Owned by the family of former senator Manuel Villar, Vista Land is the largest homebuilder in the Philippines having built about 300,000 homes in 86 cities and municipalities in 35 provinces around the country.
Unit VLL International last month raised $300 million from the sale of senior unsecured notes due in 2022 with a nominal rate of 7.375 percent. It was the first 7-year tenor notes issued by the company under a $1-billion medium term note program.
VLL plans to use proceeds from the offering for refinancing, general working capital purposes and other general corporate activities.
Since its re-IPO in 2007 when it raised P25.1 billion in proceeds, Vista Land has not generated funds through the equities market and has done most of its fund raising through the debt and bond markets.
Vista Land posted a net income of P1.64 billion in the first quarter of 2015, up 10 percent from P1.49 billion year-on-year. Revenyes increased 10 percent to P6.06 billion fromn P5.49 billion on year.
Vista Land said it would spend P25 billion in capital expenditures this year. Share price of Vista Land closed at P6.98 Thursday.