Alphaland launches P270-M share sale for minority stockholders

MANILA, Philippines - Upscale property developer Alphaland Corp. will launch a P270-million share sale next week exclusively for its minority stockholders.

The stock rights offering will give minority shareholders a chance not to be diluted following a billion-peso capital infusion from major stakeholders early this month.

“As part of the capital call done last Jan. 2, we made a commitment to our minority shareholders to protect them from dilution,” Alphaland said.

The firm will allow minority shareholders to buy new Alphaland shares at a heavy P2.50 discount from the closing price of P17.48 each on Jan. 20, when its shares were suspended from trading.

The stock rights offering, exclusively for shareholders who own less than 10 percent of Alphaland shares, will run from Feb. 3 to 7.

Alphaland will sell 108 million new shares, which is expected to raise P270.8 million in gross proceeds.

“The proceeds will be used to partly fund the working capital and capital expenditure requirements of the company,” Alphaland said.

“Any shares not taken up in the offering (for minority shareholders) will be acquired by Unicapital Securities Inc. who is the underwriter for the offering,” it added.

Early this month, Alphaland issued new shares in line with a capital call to ease the effects of a credit crunch experienced by the company.

“Because of time constraints, the capital call was made only to owners of more than 10 percent via a private placement,” Alphaland said.

The transaction allowed the group of former Trade Minister Roberto V. Ongpin to secure 50.57 percent of Alphaland’s outstanding shares after London-based fund manager Ashmore Group ignored the capital call.

Prior to the transaction, the Ongpin Group owned 21.73 percent of Alphaland while Ashmore controlled 69.37 percent, which is now down to 24.41 percent.

Alphaland is pursuing a share sale to comply with the 10-percent minimum public ownership requirement of the local bourse. The company has a public float of just 5.07 percent.

Alphaland, which is into high-end leisure developments, is a joint venture between Ashmore and Ongpin’s RVO Capital Ventures.

It is the company behind the P2-billion Alphaland Marina Club and the 32-hectare Bay City development along Manila Bay, the P4-billion Balesin Island Club in Quezon province, and the Alphaland City Club in Makati central business district.