Filinvest Development Corp. (FDC), the listed holding firm of tycoon Andrew Gotianun, is planning to undertake a follow-on offering and/or convertible bond issuance estimated to raise about P20 billion.
In a disclosure to the Philippine Stock Exchange, FDC said its board approved the issuance of a maximum of 3.5 billion common shares through primary and secondary offering, with an option to issue convertible bonds to the public.
FDC said the proposed fund-raising activities are subject to the approval of its shareholders in a special meeting to be held on Sept. 7 this year.
“The corporation is currently evaluating its options regarding any potential fundraising activity, including the timing of such fundraising and the feasibility of the bond flotation,” FDC said.
FDC has interests in residential property development, information technology, and banking and financial services.
FDC’s property unit Filinvest Land is investing P700 million in three new projects in Davao City and the Island Garden City of Samal.
FDC recently purchased Pacific Sugar Holdings Corp. from its biggest shareholder, ALG Holdings Corp., in a deal valued at P10.76 billion.
Pacific Sugar owns Cotabato Sugar Central Co. Inc., Davao Sugar Central Co. and High Yield Sugar Farms Inc.
ALG, which already owns 70.52 percent of FDC, will receive an additional 1.55 billion shares in FDC as payment. Pacific Sugar owns and manages two sugar mills with a combined milling capacity of 9,000 tons per day. Its expansion program will increase its daily capacity to 15,000 tons, making it the second-largest combined milling capacity in the Mindanao region.
FDC reported a net income of P1.6 billion in the first quarter of the year, up 952 percent from the previous year on the back of higher real estate sales and one-time gain on the sale of its affiliate’s shares.
The group reported a net extraordinary gain of P1.1 billion from the sale of shares in FLI by Filinvest Alabang Inc.
Excluding the share sale, FDC’s net income still grew 213 percent to P470 million in the quarter. Net revenue from sales of lots, condominium units and club shares by sister companies, FLI and Filinvest Alabang, amounted to P2.8 billion, nearly four times the previous level.
Another subsidiary, East West Banking Corp., posted a net income of P372.4 million in the quarter, up 12 percent from P331.9 million last year. FDC is stepping up the development of the 12-hectare Seascapes Resort Town in Mactan Island, Cebu, which offers fully furnished units and premium lots.
It is also putting up a two-tower high-end residential condominium building in Fort Bonifacio, Makati City.