Megaworld unit sets P5.62B rights offer

MANILA, Philippines–Suntrust Home Developers Inc., a housing development affiliate of the Megaworld group, plans to raise P5.62 billion from the sale of new shares to existing shareholders.

Based on a regulatory filing, the company plans to offer 5.62 billion common shares at P1 a share, which is likewise the par value of these shares.

Each holder of common shares is entitled to subscribe to 2.5 rights shares for every single common share held as of record date, which will be set as soon as the Philippine Stock Exchange approves the listing of the shares.

For those who will subscribe, 25 percent of the offer price must be paid upon submission of the application and the balance of 75 percent must be payable upon call by the board of directors to be made not later than three years from the date of approval by the PSE of the listing of the shares.  But subscribers have the  option to pay 100 percent of the offer price upon application.

BDO Capital and Investment Corp. was mandated as the underwriter of the stock rights offering.

Megaworld, a substantial shareholder, has “committed and undertaken to subscribe to its entitlement shares and any unsubscribed rights shares” to ensure that the offering will be fully subscribed.

Through subsidiary First Oceanic Property Management Inc. (Fopmi), Suntrust is engaged in property management of residential and office buildings and private estates. Fopmi is into property management and provides vital real estate management services for several residential and office condominium buildings and private estates in Metro Manila. These include basic administrative, housekeeping and security services and special services such as facilities and equipment management, audit and technical support services, finance and account management, and procurement services.

In 2002, the company acquired from an affiliate, Empire East Land Holdings Inc., all of the latter’s shareholdings in Empire East Properties Inc., which later changed its name to Suntrust Properties Inc. (SPI). The company has interests in mass housing development through SPI, whose principal products include socialized and low-cost house-and-lot packages and condominium units.–Doris C. Dumlao