BUSINESSMAN Andrew Tan’s ownership in property developer Megaworld Corp. will slightly be diluted after the company sells part of its unissued common shares to certain investors that hold its perpetual bonds.
A disclosure to the Philippine Stock Exchange said the ownership in Megaworld of Tan’s holding firm Alliance Global Group Inc. (AGI) will go down to 50.15 percent from the previous 52.54 percent, while New Town Land Partners Inc.’s share in the developer will slide to 14.15 percent from 14.82 percent.
New Town is a unit of AGI.
Megaworld is issuing some 1.82 billion common shares to certain holders of the company’s $200-million senior perpetual bonds, which has a yield of 5.375 percent, that will also be listed at the PSE. The shares were sold at P5.70 per share, or based on the company’s stock closing price on August 9.
Megaworld share price was last traded at P4.84 apiece.
It did not disclose the identity of the buyers.
“Upon listing of the subscription shares in the Exchange, the securities shall be repurchased by way of payment by MEG to the holders of the securities at an agreed repurchase price. Said repurchase price shall be used by the holders of the securities to pay in cash the subscription price for the subscription shares,” Megaworld said in its disclosure.
After the sale, the foreign ownership of Megaworld will increase to 20.63 percent from the previous 16.84 percent, while its public float will be reduced to 31.87 percent from 33.67 percent.
Megaworld said its income for the first half of the year ending June grew 18 percent to P8.9 billion from P7.5 billion last year as all of its core businesses grew at a double-digit rate.
Revenues went up 18 percent for the period to P31.7 billion from P27 billion last year. Its residential business, rental and hotel operations, accounted for 63 percent, 26 percent and 4 percent of total revenues, respectively. The balance of 7 percent came from its noncore revenues, the company said.