HK group of Teik Seng Cheah to pump funds in MJIC tourism project
MANILA, Philippines — A Hong Kong-based investor group has acquired a controlling stake in MJC Investments Corp. (MJIC) by pumping in fresh funds to support a tourism-oriented property project at the San Lazaro Business and Tourism Park in Santa Cruz, Manila.
MJIC told the Philippine Stock Exchange on Monday that its board of directors had approved the additional subscription by a strategic investor from Hong Kong represented by Teik Seng Cheah through Philippine affiliates amounting to 673.79 million shares.
Based on a report on public ownership filed on Monday, the Hong Kong-based group now owns 63.1 percent of MJIC while the Manila Jockey Club group led by chair Alfonso Reyno Jr. owns 29 percent.
It was earlier reported that Teik Seng Cheah was managing director of ECM Libra Financial Group Berhad, a listed Malaysian boutique financial services group. The investor group represented by Teik Seng Cheah previously bought an initial 33 percent stake in MJIC for P450 million or 450 million shares at P1 each.
“The funds generated from the subscription shall be used for the ongoing construction of the hotel and entertainment project in Sta. Cruz, Manila,” the disclosure said.
The Philippine Stock Exchange implemented a one-hour trading halt on MJIC on Monday, noting that this deal was covered by the rule on additional listing of securities. After resuming trades, MJIC shares rose to close at 10.56 percent or P3.98 per share on Monday, giving it a market capitalization of about P9 billion.
The subscription will be taken from the increase in MJIC’s authorized capital stock to P5 billion.
The Sta. Ana project involves the construction of an 18-story five-star all-suite international branded luxury hotel, and an expansive podium, which will be home to high-end restaurants, a column-less ballroom and over 5,000 square meters of themed indoor entertainment space.
The MJC group now conducts its racing operations in a facility in Carmona, Cavite. It also operates off-track betting (OTB) stations and is expanding its OTB network in Metro Manila as well as in provincial areas.
It has ventured into gaming operations with the establishment of a casino known as the Pagcor Club San Lazaro located on the third floor of the Turf Club at the San Lazaro Leisure Park in Carmona, Cavite.
