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Friday, March 29, 2024

Uy’s PH Resorts hiking capital base to P15b from P8b

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PH Resorts Group Holdings Inc., the holding company for the tourism-related businesses of the Dennis Uy-led Udenna Group, is again increasing its capital base to P15 billion from P8 billion in preparation for a fund raising activity to finance casino projects.

PH Resorts said in a regulatory filing it would seek shareholders’ approval to increase the authorised capital stock prior to the issuance of shares through an equity offering, private placement or similar transactions to be determined by the board.

“The increase in the capital stock of the corporation is intended to accommodate the relevant capital expenditures necessary for the corporation’s ongoing projects and for general corporate purposes,” said PH Resorts Inc.

PH Resorts is currently developing two integrated hotel and casino—Emerald in Cebu and Clark Resort in Pampanga.

The group has budgeted P34.17 billion for developing the first phase of The Emerald and P13.67 billion for the Clark Resort.

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The projects are currently funded by an equity of P1.9 billion. Approximately P33.49 billion of the project cost is expected to be funded by debt.

PH Resorts said it already secured P3.88 billion in committed loan facilities, comprising of P3.1 billion and P788 million from China Banking Corp. It is in the advanced stage of negotiating additional financing lines from several creditors.

PH Resorts earlier said it planned to raise as much as P12 billion from the sale of up to 2.054 billion common shares at a price of between P3.65 and P5.84 apiece.

The company in February deferred the share sale after it “was presented with more strategically suitable alternative options for its funding needs.”

PH Resorts will also seek shareholders’ approval for its merger with PH Travel and Leisure Holdings Corp.

PH Travel is 100 percent owned by the company and the holding company for the gaming and hospitality arm of the Udenna Group, which includes Lapu-lapu Leisure Inc., Clark Grand Leisure Corp. and Donatela Hotel Panglao Corp. 

The merger is being proposed for better efficiency and consolidation.

“Considering that fact the company and PH Travel own, hold and manage various assets for the same beneficial owner, with PH Travel being the 100 percent direct subsidiary of the company, it is deemed necessary and advisable to merge the two companies,” PH Resorts said.

PH Resorts in December just increased its authorised capital stock to P8 billion from P500 million.

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