10:28 PM
January 23, 2013 1:57pm

Leisure & Resorts World Corp. is offering P1.75 billion worth of perpetual preferred shares to fund investments in casinos and hotels and buy additional bingo sites.
 
The shares would be issued at P1 apiece in a private placement, the company said in a disclosure to the Philippine Stock Exchange on Wednesday.
 
The cumulative, non-voting, and non-participating preferred shares will carry a dividend rate of 8.5 percent.
 
The company said it is raising its capitalization from P1.6 billion to P5 billion, divided into 2.5 billion common shares and 2.5 billion preferred shares.
 
Leisure & Resorts also approved the issuance of 200 million common shares with a par value of P1 per share for distribution as stock dividends subject to the approval of stockholders and the Securities and Exchange Commission.
 
As a sweetener, the company will issue 2.5 billion preferred shares maximum and 125 million warrants on the shares.
 
Investors will be issued one warrant for every 20 preferred shares, with each warrant entitling the investor to purchase one common share.
 
The warrant will have an exercise price of P15, equivalent to the company’s weighted average trading price for three months prior to the exercise date of the warrant, minus 10 percent discount.
 
Proceeds from the offering will be used to fund its share in the Belle Grande Integrated Resort & Casino, a joint venture between Belle Corp. and Macau casino giant Melco Crowne, and in the Midas Hotel and Techzone project. — VS, GMA News

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