Discovery World to expand its resorts business

DISCOVERY WORLD Corp. (DWC) has hiked its stake in one of its subsidiaries, as the company targets to expand its resorts business.

In a disclosure to the stock exchange on Wednesday, the company said it would subscribe to 26.2 million shares, or 100% of the total outstanding shares in Balay Holdings, Inc. With a par value of P1 per share, the subscription was priced at P26.2 million.

“This acquisition is in line with DWC’s business and will create opportunities for expansion of the corporation’s resort business,” the company said.

DWC said Balay Holdings has properties in Boracay island that may be used as the staff house for its employees. The listed firm operates a hotel and resort business in the island called Discovery Shores Boracay, established back in 2007.

In line with the transaction, Balay Holdings will be increasing its authorized capital stock to P50 million, from the current P3.2 million, which requires approval from the Securities and Exchange Commission.

Incorporated in 1993, DWC was called Southern Visayas Property Holdings, Inc. before changing its name to the present one in 2013. The company’s interests lie in the development, acquisition, administration, construction, and operation of hotels, resorts, apartelles, townhouses, condominiums, and other tourist- related structures.

The company’s other properties include Club Paradise in Dimakya Island in Coron, Palawan, Platitos Resto Bar, Sands Lounge, Indigo Resto Bar, and Sunken Pool Bar.

DWC is also ramping up development in Palawan, one of the country’s top tourist destinations. In 2016, it incorporated Long Beach Property Holdings, Inc. to handle the company’s property developments in Palawan. DWC has previously purchased 98.87% of Cay Islands Corp., which has businesses in Palawan.

DWC booked a net income attributable to the parent of P26.6 million in the first nine months of 2017, 6% higher year on year. Revenues, meanwhile, jumped 31% to P535.9 million for the period.

Shares in DWC lost 29 centavos or 10.03% to P2.60 apiece at the Philippine Stock Exchange on Wednesday. —