Eternal Gardens invests in Citystate

Memorial park developer Eternal Gardens Memorial Park Corp. (EGMPC) has invested in affiliate thrift bank Citystate Savings Bank in support of the latter’s recapitalization program.

EGMPC signed an agreement to acquire 1.43 million shares of unissued shares of Citystate at par value of P10 per share or P14.3 million, the bank said in a regulatory filing yesterday.

This bloc is composed of the remaining unissued shares out of Citystate’s authorized capital stock.

“The agreement was executed to comply with the documentary requirements of the Securities and Exchange Commission in connection with the subscription of EGMPC to the unsubscribed portion of the authorized capital stock of the bank,” the disclosure said.

Citystate shares have been trading below par. The purchase was made at a premium to Citystate’s last trading price of P7.90 per share on Aug.15.

The stake bought by Eternal Gardens was equivalent to 2 percent of the outstanding shares of Citystate.

Since the subscription pertains to less than 10 percent of the total issued and outstanding capital stock of the thrift bank, the PSE’s rule on additional listing of shares will not apply.

The thrift bank is currently valued by the stock market at P574.84 million.

Founded by late Ambassador Antonio Cabangon Chua, EGPMC is one of the pioneers in the Philippine memorial care industry. Based on its website, it opened its first memorial park in Baesa, Caloocan City in 1976, at a time when buying a memorial lot ahead of need was unpopular.

The company likewise opened memorial parks in new locations: Dagupan in 1983, Biñan in 1984, Balagtas, Batangas City in 1986, Lipa City in 1992, Naga City in 2001, Cabanatuan City in 2004, Sta. Rosa City in 2008, Concepcion, Batangas City in 2011 and Cagayan de Oro City in 2014. —DORIS DUMLAO-ABADILLA