Posted on
February 15, 2013 07:48:49 PM [ Businessworld Online ]
DEVELOPER
BOULEVARD Holdings, Inc. is poised to raise roughly P700 million for current
resort projects and other capital requirements after a planned equity infusion
from majority investor JP Guilds, Inc., the company said in a disclosure on
Friday.
Following a
special meeting on Thursday, the board of Boulevard Holdings approved JP
Guilds’s subscription to 3.10 million unissued common shares at 15 centavos
apiece, according to the disclosure.
In addition,
the board similarly endorsed JP Guilds’s subscription to 1.25 billion common
shares at 15 centavos each from an approved hike in Boulevard Holdings’s
authorized capital stock to P1.7 billion from P1.2 billion.
“The
corporation estimates to accumulate aggregate proceeds of around P700 million
from the subscription to the unissued common shares and new common shares from
the increase in authorized capital stock. The expected proceeds will be used
for the ongoing construction and expansion projects of Friday’s Holdings, Inc.,
Friday’s Puerto Galera, Inc., and Cala Paniman, Inc. and working capital
requirements of the corporation, the parent company,” the disclosure read.
Shares of
Boulevard Holdings were suspended from 9:00 to 10:00 a.m. on Friday in
accordance with Philippine Stock Exchange rules on additional share listings.
Through
77%-owned unit Friday’s Holdings, Boulevard Holdings is building Puerto Galera
Beach Resort, a planned 62-room development in Boquete Island, Oriental
Mindoro, and operates Friday’s Boracay, a 52-room luxury resort on Boracay
Island in Aklan province.
Further,
Boulevard Holdings -- via subsidiary Cala Paniman -- scouting for foreign and
local partners to develop its 3,000-hectare Puerto Azul resort in Ternate,
Cavite after it failed in 2011 to close a long-term venture with Korea-based
Resom Resort Co., Ltd. which preferred instead to invest in a Subic hotel
resort.
In June last
year, the developer appointed Singapore-based Aecom Singapore Pte. Ltd. to
review and update the Puerto Azul master plan.
Boulevard
Holdings is a holding company established in 1994, with primary interests in
hotel, resort, and tourism-related developments. The company saw a steep drop
in its net income for the first half ending Nov. 2012 by 55.30% to P1.56
million from P3.49 million in 2011 due to the impact on sales of the global
slowdown and recent calamities.
Revenues in
the same comparative period dipped by 7.66% to P44.34 million versus P48.02
million year-on-year, while costs and expenses rose by 2.86% to P41.38 million
from P40.23 million in 2011.
Shares of
Boulevard Holdings slightly rose by P0.001 or 0.76% to P0.132 last Friday from
P0.131 last Thursday. -- F. J. G. de la Fuente
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