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MANILA - JTH Davies Holdings Inc., which is poised to become the holding firm for the STI Group's education assets, is eyeing to raise funds to expand its business and widen its public float.
JTH chairman Eusebio Tanco told reporters that the listed company is looking to raise $100 million through a follow-on offering or a private placement transaction.
The new shares that may be sold to local and overseas investors will be taken out of a planned increase in authorized capital stock.
"There's a need for capital and we won't just take anybody. We're looking for strategic partners, partners that will help us grow our education portfolio," said Tanco.
JTH president Monico Jacob said UBS will book run the share sale, which may take place in November.
Proceeds will fund the upgrading of STI facilities amounting to P3 billion, with the balance allotted for working capital.
STI will break ground on campuses in the Caloocan and Ortigas-Cainta area this week. Next year, it will build schools in Lucena, Calamba, Cubao, Cebu, Davao, Cagayan de Oro and Batangas.
"The objective is to widen the ownership, to grow the education business. We are a country that has a large population base. We're a service economy and therefore education has become very important," said Tanco.
On Friday, shareholders of JTH approved a private placement with Capital Managers & Advisors Inc. and STI Education Services Group, and a share swap with STI EG that will allow the latter to control 83.96 percent of the company's issued and outstanding capital stock.
The company also gained shareholders' nod to hike it capital stock to 10 billion shares with an aggregate value of P5 billion to accommodate the private placement and share swap transactions.
Shareholders also approved the amendment to the company's By-Laws to reflect the corporation’s change of name to STI Holdings Inc., which will become the holding company for education-related activities and investments of the STI Group.
STI Holdings will own all wholly owned and franchised STI schools, Philippine Women's University, Jose Abad Santos Memorial School and iAcademy. Currently, the group's education network has a student population of over 72,000.
STI Holdings also has a 20 percent stake in STI Investments, the holding firm for the Tanco group's non-education assets.
In 2010, Tanco bought a 68-percent stake in dormant firm JTH from Philippine Racing Club Inc. for P153.76 million.
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