RLC sets price for P20-B SRO at P18.20/share.
By James A. Loyola
Robinsons Land Corporation, the property development arm of the Gokongwei group, has set the price of its planned P20-billion stock rights offering at P18.20 per share.
In a disclosure to the Philippine Stock Exchange, the firm said the offer price is based on the 45-day volume-weighted average price of RLC common shares listed at the bourse as of January 24, 2018 at a discount of 16 percent.
RLC said it has also pegged the ratio of the rights offering at one rights offer share for every 3.7217 existing common shares held as of January 31, 2018. The offering period will be from February 2 to February 8, 2018.
Proceeds from the stock rights offering will be used to fund the acquisition of land located in various parts of the country for all of the company's business segments.
RLC said its parent company JG Summit Holdings, Inc. has expressed its full support for the company's proposed stock rights offering.
JGS commits to purchase not just its entitlement of the Rights Shares, but also any unsubscribed Rights Shares after the mandatory second round of the SRO.
Thus, if any shareholder fails to subscribe to all the Rights Shares, JGS, through the Underwriter, will take up any remaining unsubscribed Rights Shares after the mandatory second round of the offer.
Should JGS fail to subscribe to all the remaining Rights Shares, BPI Capital Corporation will take up any remaining unsubscribed Rights Shares pursuant to its role as underwriter.
For the first nine months of the 2017, RLC reported a consolidated attributable net income of P4.57 billion, a slight increase from last year.
Total real estate revenues were down by 3 percent to P15.27 billion against last year's P15.80 billion, while hotel revenues were up by 5 percent to P1.37 billion.
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|Title Annotation:||Business News|
|Date:||Jan 25, 2018|
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