LRWC gets nod to issue 1.3-B shares
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Fri, 11 Jan 2019 16:42:55 +0000
SHAREHOLDERS of Leisure and Resorts World Corp. (LRWC) approved on Friday the company’s plan to issue up to 1.3 billion common shares through a private placement.
At its special stockholders’ meeting in Pasay City, the listed resort operator said the shares to be released would come from its unissued capital stock.
The transaction price will be based on a premium over the shares’ closing price on Nov. 29, 2018, which was P3.30 apiece.
This translates to all 1.3 billion shares as amounting to at least P4.3 billion.
Proceeds from the issuance shall be used to refinance existing debt obligations and fund the businesses of its subsidiaries, LRWC said.
It also said in a disclosure last year that it was targeting fewer than 19 investors for the said placement.
LRWC is behind the unnamed, $550-million casino and resort complex on Aklan province’s Boracay island that it was planning to build in partnership with Macau-based Galaxy Entertainment Group Ltd.
The issuance is expected to boost LRWC’s net income, which dropped by 23.2 perecent to P307.8 million in the first nine months of 2018 from P400.7 million registered in the same period in 2019. But its net profit in the third quarter surged by 765 percent to P101.66 million from P10.68 million year-on-year.
Shares of LRWC increased by 8 centavos or 2.27 percent to P2.12 apiece on Friday.
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