MJC unit gets P2.15B in fresh equity infusion
MJC Investments Corp., the property development unit of Manila Jockey Club, accepted Monday a P2.15-billion fresh equity infusion to fund the construction of a hotel, tourism and entertainment hub at San Lazaro Business and Tourism Park in Sta. Cruz, Manila.
In a disclosure to the Philippine Stock Exchange, MJIC said its board had approved the subscription by 16 investments holding companies to about 2.15 billion common shares at a par value of P1 per share.
The planned tourism hub will feature an 18-floor tower and podium with an initial complement of 160 rooms and 900 parking slots at opening. It is expected to be completed in 2015. Other projects in the pipeline include a resort-style leisure hotel, which will rise at the San Lazaro Leisure Park in Carmona, Cavite; high-income assisted living residential facilities; and other distinctive tourism products to be located at high-growth areas throughout the country.
MJIC chairman Alfonso Reyno Jr. said the equity infusion by the consortium of 16 local and foreign-controlled investing firms was “a transformative event for MIC and also for its current majority shareholder, MJC (Manila Jockey Club).”
He said this project ensured that MJIC was “fully committed to becoming a significant participant in the rapidly growing tourism and entertainment space.”
“The investment also ensures that the entire cost related to MJIC’s first development project—also the first true luxury hotel to be built north of the Pasig River in many years—will be fully covered,” he said.
“We believe this is an exciting time for both (MJIC) and MJC and we continue to thank our shareholders and the investing public for their continued support,” Reyno said.
The shareholders of MJIC recently approved the increase of its capital stock from P1.5 billion to P5 billion to accommodate the entry of new investors and new capital as the company prepared to “aggressively enter the fast-growing tourism sector,” the company said.
Shares of MJIC and parent firm MJC surged by 35.54 percent and 8.58 percent, respectively, in anticipation of this equity infusion.
The equity infusion will give the consortium of investors about 70 percent control of MJIC, while MJC will retain about 30 percent.
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