Century Properties sets backdoor listing on Philippine Stock Exchange

MANILA, Philippines—High-rise property developer Century Properties Inc. has firmed up plans for the backdoor listing on the Philippine Stock Exchange through the infusion of its property businesses into dormant East Asia Power Resources Corp.
In a disclosure to the Philippine Stock Exchange, East Asia announced an approval by the board to raise its authorized capital stock from the existing P6 billion to P10 billion in line with a forthcoming equity restructuring and backdoor listing of the property interests of the Century group.
Under the plan, East Asia will change its name to Century Properties Group Inc. (CPI) in connection with Century Property’s proposed subscription to shares of East Asia in exchange for all its shares in subsidiaries, namely” Century Properties Management Inc., Century Communities Corp., Century Limitless Corp. at a price of P1 per common share.
A board resolution was passed to pave the way for the change in corporate name alongside a shift in the primary purpose of the dormant power company to property-related businesses.
In line with the rule on backdoor listing, the PSE suspended the trading of East Asia shares on Thursday pending the submission of a comprehensive disclosure on the transaction.
Backdoor listing is deemed to occur when a listed company acquires, merges or combines with an unlisted company or when a listed company is acquired by, merged or combined with an unlisted company which results in a substantial change in business, board membership or voting structure of the listed company.
The Century group also plans an additional listing on the PSE of shares to be issued by East Asia.  The disclosure said an equity deal is in the works to increase the financial capability of the corporation and to meet the 10 percent minimum public float required by the PSE for continuing listing.
To date, only 6.4 percent of East Asia’s shares are held and traded by the public.
East Asia has set a special stockholders meeting on Sept. 26 to implement the restructuring.
Century Properties, led by former ambassador Jose Antonio, earlier entered into deal with a private shareholder, El Paso Philippines Energy Co. Inc., to take over East Asia.
The 25-year-old property developer has undertaken 40 major projects, including Essensa East Forbes in Fort Bonifacio, Medical Plaza Makati and Ortigas, Pacific Star Building and The Asian Hospital Medical Suites.

It is now one of the largest privately owned full-service real-estate firms in the Philippines, with more than $2 billion in assets under management.