GT Capital takes full control of Federal Land
MANILA, Philippines—Taipan George Ty-led GT Capital Holdings has acquired an additional 20-percent block to take full control of property subsidiary Federal Land Inc. for P2.7 billion.
This increase in stake in Federal Land is part of the holding firm’s planned use of proceeds from a recent P24-billion stock debut.
In a disclosure to the Philippine Stock Exchange, GT Capital said it had executed a deed of absolute sale with various selling shareholders of Federal Land for it to acquire 20 million common shares. This purchase raised its equity interest from 80 to 100 percent.
It was earlier announced that GT Capital planned to use up to P6.16 billion of the primary proceeds from its initial public offering to boost the capital spending of Federal Land this 2012 through 2013. This is to bankroll ongoing projects like Grand Hyatt, Marco Polo Residences and Metropolitan Park.
For the first quarter, Federal Land reported that reservation sales surged by 113 percent to P3.8 billion as strong sales were realized from its various property projects.
Likewise, part of the IPO disbursement plan was the earlier reported exercise of its option to acquire a 4.6 percent stake in Global Business Power.
GT Capital also plans to spend IPO proceeds as follows:
* Up to P3 billion for the expansion of Toledo Capital Corp.;
* Up to P4 billion to repay existing debt of GT Holdings; and
* Up to P1.75 billion for new business development, including possible participation in infrastructure projects, business process outsourcing, renewable energy and general corporate purposes.
