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MANILA - Megaworld Corp. will subscribe to the planned stock rights offering of Empire East Land Holdings Inc.
In a disclosure to the Philippine Stock Exchange, Megaworld said it will subscribe to its rights offer entitlement and to any rights offer shares not taken up by other shareholders.
"This will ensure that all 2.6 billion rights offer shares will be subscribed," Megaworld said.
With its 47.28 percent stake, Megaworld is the major and controlling shareholder of Empire East.
Last month, Empire East obtained shareholders' approval to conduct a stock rights offering in which stockholders can subscribe to one share for every four shares held.
The property firm may raise P2.6-billion from the rights offer that will partly finance its five-year war chest of P15 billion to P20 billion, Anthony Charlemagne Yu, Empire East president, said in a previous interview.
Empire East intends to use the proceeds of the rights offer for land banking, project development and general corporate purposes.
The company is awaiting regulatory approval to hike its authorized capital stock from P23.4 billion to P33.4 billion from which the rights offer shares will be issued.
On Monday, Empire East announced its foray into the high-end segment of the market after inking a partnership with the group of Japanese billionaire Kazuo Okada for the development of a luxury residential resort condominium project in Entertainment City.
The upscale residential project comprising of more than 25 towers will cost P45 billion, with the company committing an initial P10 billion.
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