MEGAWORLD Corp. said its board of directors has approved the subscription of its parent company, Alliance Global Group, Inc. (AGI), to its 1.38 billion common shares for P2.61 billion.
In a stock exchange disclosure, Megaworld said the 1.38 billion common shares will be issued out of the P5.5 billion increase in authorized capital stock.
Alliance Global will subscribe to its shares priced at P1.90 each, representing a 5% premium over the company’s 30-day volume weighted average price, Megaworld said.
“The subscription is made by AGI to support growth and future business expansions of the corporation in line with the latter’s strategies and directions,” Megaworld said.
For the first quarter, property developer Megaworld saw an 8% jump in its first-quarter attributable net income to P4.4 billion from P4.08 billion last year on higher residential sales as well as mall and hotel revenues.
Consolidated revenues during the January to March period improved by 16% to P18.87 billion from P16.23 billion last year.
The company attributed the revenue growth to its Boracay Newcoast development, which saw strong bookings of the 1,200-seater Boracay Newcoast Convention Center.
To date, Megaworld has 31 master-planned integrated urban townships, integrated lifestyle communities, and lifestyle estates across the country.
At the stock exchange on Thursday, shares in the company closed four centavos, 2.27% higher at P1.80 apiece. — Ashley Erika O. Jose
