MANILA, Philippines - STI Education Systems Holdings Inc. (STI-ESH) has secured the Securities and Exchange Commission’s go-signal to raise its capitalization to P5 billion from only P551.5 million.
The capital hike was funded through a share-for-share swap deal with shareholders of STI Education Services Group Inc. using an exchange ratio of 6.5 STI-ESH shares for every one STI ESG share.
The exchange ratio was approved by the STI-ESH shareholders during a special meeting held on Aug. 10.
Following the completion of the share swap, STI-ESH now owns 940.29 million STI ESG shares or 95.5 percent of the latter’s issued and outstanding capital.
The transaction allowed the conversion of STI-ESH (formerly JTH Davies) into businessman Eusebio Tanco’s education holding company.
Tanco consolidated all his education assets – the STI chain of schools, a 40 percent stake in Philippine Women’s University and iACADEMY – under STI-ESH.
Also to be injected into STI-ESH is a 20 percent interest in STI Investments, which holds Tanco’s strategic investment in PhilPlans, a leading pre-need savings program with plans dedicated to education, and PhilCare.
Tanco’s group operates the country’s largest private network of educational institutions through its 65 STI-branded college campuses and 20 educational centers, two non-branded colleges and one university.
The group will have a management agreement with PWU, a leading autonomous educational university that provides programs including nursing, pharmacy, business and fine arts.
The group is currently constructing new facilities in Calamba, Lucena, Davao, Cebu, Cagayan de Oro and possibly, Batangas.
Aside from educational services, Tanco is also engaged in mining, pre-need products, port operations, and gaming.