SEC okays FLI’s P4-B capital hike bid

Despite the ongoing probe of alleged insider trading activities by its major shareholders, property firm Filinvest Land Inc. (FLI) has secured the approval by the Securities and Exchange Commission (SEC) for a P4-billion increase in its authorized capital to cover a windfall 85 percent stock dividend to shareholders.

The SEC, the same regulatory body investigating the unusual price movement of FLI stocks earlier this year, granted the increase of the company’s authorized capital stock from P6 billion to P10 billion.

The said increase will fund the 85 percent stock dividend to be taken from the company’s additional paid-in capital and unrestricted earnings to stockholders of record as of Aug. 27. An estimated P3.59 billion will be allotted for the stock dividend declaration.

The Gotianun-owned FLI, one of the country’s largest real estate developers, is in the middle of an SEC probe over the alleged insider trading of its stocks by its controlling shareholder parent firm Filinvest Development Corp.

In its reply to the SEC’s Compliance and Enforcement Department, FDC emphasized that the sale of FLI shares was in the exercise of corporate authority and in discharge of its corporate responsibility to maintain the financial stability of FLI and to protect shareholder value.

"The sale was intended to provide additional funds to enable FLI to meet maturing bond obligations on Feb. 8, 2002. When FDC sold FLI shares, it did not possess material information which had not been disclosed," FDC president Josephine Gotianun-Yap said.

FLI on Feb. 5 disclosed that it would be issuing P1.2 billion worth of convertible bonds to Reco Grandhomes, a property unit of the Singapore government, to enable FLI to retire about $100 million in maturing bond obligations.

Last year, FLI posted a net income of P531.23 million on total revenues of P1.29 billion, propped up by strong sales of its low-and middle-class housing units. As one of the leading residential developers, FLI offers a wide range of products from low-cost to high-end housing thru its Pabahay, Futura Classic, Corte Bella and Excelion brands. A major project, Brentville International in Biñan, Laguna, recently marked the inauguration of the first commercial building in the Village Front commercial strip.

FLI also owns a 20-percent stake in Filinvest Alabang Inc., the developer of the 244-hectare Filinvest Corporate City, Festival Supermall, Northgate Cyberzone, Palms Country Club and various high-rise residential developments all located in Alabang, Muntinlupa City.

At the Philippine Stock Exchange, FLI was among the most active stocks as its shares closed 12 centavos higher to P1.92 yesterday.