Press Release: ONGPIN-LED ALPHALAND FULFILLS PROMISE TO MINORITY SHAREHOLDERS
Property developer Alphaland Corporation disclosed on Wednesday (29 January 2014) that it is undertaking a Stock Rights Offering exclusively for its minority shareholders.
“As part of the Capital Call done last January 2nd, we made a commitment to our minority shareholders to protect them from dilution,” an Alphaland officer said. “Now, that commitment is being fulfilled without delay by allowing minority shareholders to subscribe to new shares of Alphaland at the same Php2.50 price per share.”
The offer period is from February 3 to 7, 2014.
Earlier, Alphaland Corporation issued new shares pursuant to a Capital Call for the infusion of fresh capital into the company. Since the Ashmore Group defaulted on the Capital Call, it resulted in the group of shareholders led by businessman Roberto Ongpin gaining firm control of Alphaland with a combined ownership stake of 50.57%.
Because of time constraints, the Capital Call was made only to owners of more than 10% via a private placement. However, to protect minority shareholders, the Board of Directors likewise authorized a Stock Rights Offering exclusively for less than 10% owners at the same terms as the Capital Call.
Some 108 million new Alphaland shares will form part of this Stock Rights Offering which is expected to raise gross proceeds of Php270.8 million. The proceeds will be used to partly fund the working capital and capital expenditure requirements of the company.
Any shares not taken up in the offering will be acquired by Unicapital Securities, Inc. who is the underwriter for the offering.
Like the shares issued pursuant to the Capital Call, the Stock Rights Offering shares will also be applied for listing at the Philippine Stock Exchange.