EEI sells 2 lots for P1B

EEI Corp., a construction firm controlled by the Yuchengco family, stands to gain P1 billion from the sale of its real estate properties.

In a disclosure to the Philippine Stock Exchange, EEI said it signed a deed of conveyance to effect a transfer of its properties in Manggahan St. in Bagumbayan, Quezon City and in Bauan, Batangas for a total consideration of P1 billion.

EEI said the money will be used to fund loan payments, working capital requirements and the re-fleeting of construction equipment.

To raise additional funds, EEI is selling up to 220 million shares through a stock rights offering in March this year, estimated to generate about P500 million. The offer price has yet to be announced by the company.

EEI closed P0.35 higher yesterday at P4.15 each.

Bulk of the proceeds from the rights issue, or P318 million, will be used to settle a portion of its bank debts. Another P164 million will be channeled to the construction of ongoing projects which include the Rio-Tuba 2, a project of JGC Corp. and Petro-FCC of Petron with Daelim Philippines, and the Shang Grand Tower with Kuok Properties.

As of end-September 2006, EEI had a total short-term debt of P1.815 billion and P119 million in long-term debt.

Tapped as lead underwriter for the issue is RCBC Capital Corp., a subsidiary of the Yuchengco family’s Rizal Commercial Banking Corp.

EEI reported a net income of P104 million in the first nine months of 2006 or more than four times the P22 million reported the previous level.

Consolidated revenues rose 22 percent to P3.75 billion from P3.07 billion, largely due to the rise in construction contracts to P3.36 billion owing to strong domestic construction activity.

Among the company’s major ongoing projects include The Residences at Greenbelt and One Serendra of Ayala Land Inc., Philtown’s Fairways Tower and Kuok Properties’ Shang Grand Tower.

The company is also building various key infrastructure projects, such as the Iloilo Airport, the Subic Clark Expressway, the elevated access road to NAIA-3 Terminal and several expansion packages for three stations of LRT-1.