AGI raises P9.73B from treasury shares

MANILA, Philippines -  Alliance Global Group Inc. (AGI), the investment holding firm of real estate magnate Andrew Tan, and its property unit Megaworld Corp. raised a total of P9.73 billion from the sale of treasury shares, up 58.4 percent from the original issue size of P6.14 billion.

In a disclosure to the Philippine Stock Exchange, AGI said it sold 550.1 million treasury shares, accounting for five percent of the company’s outstanding capital stock, while   Megaworld sold 321.9 million AGI shares at P11.16 each.

The offer price represents a discount of seven percent to AGI’s closing price of P12 Monday.

Lauro Baja, managing director of UBS, the sole bookrunner for the issue, said the transaction was the largest overnight deal, with 80 percent of the issue taken up by 10 large investors.

“There were a lot of investors that placed orders but of course we could not accommodate everyone. There was strong confidence in the company. I guess it was their tribute to the vision of what Mr. Tan has built and done for the company,” Baja said.

The issue was “extremely well received by global institutional investors,” AGI said.

AGI intends to use proceeds from the equity placement to fund investments in tourism-related projects as well as other general corporate purposes.

Aside from property development, AGI has interests in food and beverage (Emperador Distillers), quick-service restaurants (McDonald’s Philippines) and integrated tourism development (Resorts World Manila).

AGI early this year announced it was setting aside P7 billion for new tourism projects that will create synergies with Resorts World Manila, its first integrated complex project.

Resorts World Manila, a joint venture between AGI and Malaysia’s Genting Group, features the country’s largest casino to date, an iconic mall and three hotels; a 342-room Marriott Hotel; Maxims Hotel, the country’s first all-suites hotel with 172 rooms; and the upcoming Remington Hotel, it’s budget hotel offering.

It also houses a 1,500-seat performing arts theater, fine dining restaurants and an upscale shopping mall.

Since the opening of Resorts World Manila in August 2009, the number of visitors to the complex has reached over two million.

AGI expects foreign visitors to Resorts World Manila to hit 800,000 within the next three years, which should translate to tourist receipts of at least $1 billion.

AGI completed early this year the acquisition of nearly 60 percent of Fil-Estate Land Inc. for P5 billion in cash. Fil-Estate, which shall be renamed Global Estate Resorts Inc., controls more than 10 percent of the total land area in Boracay.