MANILA, Philippines - Listed investment holding firm UEM Development Corp., which is 47 percent owned by Henry Sy Jr., is beefing up its capitalization to P215 million in preparation for a preferred share offering and share swap to potentially open the possibility of a backdoor listing of the businesses owned by the eldest son of the Chinese-Filipino billionaire.
In a disclosure to the Philippine Stock Exchange yesterday, UEM’s board of directors said it also approved the change of the company’s name to Synergy 21 Grid & Development Corp. to signal its entry into power, utilities, infrastructure and related businesses.
UEM said it was raising its authorized capital of P50 million through the creation of an additional 100 million common shares and 65 million non-voting, non-cumulative preferred shares of stock.
Also approved was the exchange of the company’s common shares to be taken out of the increase in its authorized capial stock with shares in One Taipan Holdings and Pacifica 21 Holdings.
Sy Jr. , through his company One Taipan, acquired in March the 30 percent stake of Monte Oro Resources Grid Corp. in National Grid Corp. of the Philippines for $350 million. Following the purchase, he was elected president and chief executive officer of NGCP, the operator of the country’s national power transmission highway.
He is also currently the vice chairman and CEO of SM Development Corp. and vice chairman of SM Investments Corp., which owns the largest Philippine bank by assets (BDO), the nation’s biggest shopping mall operator (SM Prime) and the number one department store and grocery chains (SM Retail Group).
Sy Jr. plans to use UEM as corporate vehicle to carry out big-ticket infrastructure and public utilities projects. The government is inviting the private sector to invest in P200 billion worth of state infrastructure projects.
Founded in 1970, UEM was formerly known as Mankayan Minerals Development Co., Inc. before it changed its name to UEM Development in February 1994. It renders consultancy and advisory services, particularly for construction projects.