LRWC boosts capital to P5B

MANILA, Philippines - Hotel and recreation firm Leisure & Resorts World Corp. (LRWC) will increase its authorized capital stock to P5 billion as it seeks private investors to help fund its casino and hotel projects.

In a special meeting, the company’s board of directors approved the hike in the authorized capital to P5 billion, divided into 2.5 billion common and 2.5 billion preferred share, up from the current P1.6 billion.

To facilitate the capital hike, LRWC announced a 200-million stock dividend and plans to raise P1.75 billion through preferred shares.

“The company shall offer P1.75 billion perpetual preferred shares at a dividend rate of 8.5 percent through private placement,” LRWC said.

“Proceeds of the preferred shares offer will be used to finance the acquisition of additional bingo sites, Belle Grande Integrated Resort and Casino project, Techzone project and Midas Hotel project,” it added.

LRWC tapped Asian Alliance Investment Corp. as the financial advisor for the private placement.

The $1-billion gaming complex on reclaimed land along Manila Bay was originally a partnership between Belle Corp. of the family of mall and banking tycoon Henry Sy and bingo operator LRWC.

LRWC, which will invest P3 billion for the casino project within the 100-hectare Entertainment City, turned over to Macau casino giant Melco Crown Entertainment Ltd. the task of managing and operating the integrated casino and hotel complex in exchange for a share in the project’s earnings.

The board authorized company president Reynaldo P. Bantug to sign and negotiate the terms and conditions for a definitive agreement with Belle in relation to the casino complex.

The project, which had been sidelined due to financial issues, is targeted for opening in the first half of 2014.

It will be the second complex to open in the area, groomed to become the Philippines’ version of the Las Vegas strip, next to port mogul Enrique Razon’s Solaire Casino & Resort that will start operations in March.