Wenceslao family increases stake in DM Wenceslao to 80%

MANILA, Philippines — The Wenceslao family has increased its stake in listed D.M. Wenceslao & Associates Inc. (DMW), through the family-owned holding company WHC Inc. (WHCI).

In a regulatory filing, DMW said the Wenceslao family consolidated their shareholdings under WHCI for “estate planning purposes.”

DMW chairman Delfin Wenceslao Jr. sold his 578.8 million shares to WHCI at P6.80 per share or a total transaction value of P3.9 billion.

As a result, WHCI’s ownership in DMW increased by 17.04 percent to 79.96 percent. WHCI is wholly-owned by the Wenceslao family.

“The transaction was conducted primarily for estate planning purposes and the aggregate ownership of the Wenceslao family in DMW was not affected. Further, we note that the transaction will not result in dilution and will not affect DMW’s public float,” DMW said in a disclosure.

In the first quarter this year, DMW reported a net income of P552 million, up 24 percent. This was despite the decline in consolidated revenues of 32 percent to P693 million.

DMWAI said the decline was a result of a tax credit related to Corporate Recovery and Tax Incentives for Enterprise Act (CREATE), which was signed into law last March 26.

In terms of business segments, residential revenue dropped 61 percent to P194 million due to the impact of revenue recognition timing.

Only P44 million in revenues was booked for Pixel Residences in the first quarter compared to P480 million last year.

However, revenue from its other project, MidPark towers reached P150 million during the quarter compared to P18 million a year ago.

Recurring income, meanwhile, stood at P497 million, accounting for 72 percent of total first quarter revenues.

Notwithstanding the threats posed by the COVID19 pandemic, the company’s building leasing portfolio maintained a healthy occupancy rate of 90 percent.

DMWAI is behind Aseana City, a development project with a total land area of 107.5 hectares located along the coastal waters of Manila Bay.