RLC prices rights offer

Robinsons Land Corp. (RLC) has priced its upcoming stock rights offer at P18.20 per share.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, RLC said each shareholder is entitled to subscribe to one rights share for every 3.7217 existing common shares held as of Jan. 31 at an offer price of P18.20 apiece.

The offer price is based on the 45-day volume-weighted average price of RLC common shares listed at the PSE as of Jan. 24, 2018 at a discount of 16 percent.

Proceeds of roughly P20 billion will be used to finance the acquisition of land located in various parts of the country for the company’s different business segments.

RLC has set the offer period from Feb. 2 to 8. It has tapped BPI Capital Corp. as the underwriter for the deal.

JG Summit Holdings Inc., RLC’s controlling shareholder, has expressed its full support to the company’s proposed offer.

The company has committed to purchase not just its entitlement of the rights shares but also any unsubscribed rights shares after the mandatory second round of the rights offer.

Owned by the Gokongwei family, RLC is one of the leading real estate developers in terms of revenues, number of real estate assets, number of projects and total project size.

RLC is engaged in the development of mixed-use properties which include shopping malls, office buildings and hotels as well as horizontal and vertical residential housing developments, including socialized housing projects located in key cities.

Last year, the company’s mall developments were in Naga, Iligan and Ormoc.

Office projects, on the other hand, included Cyber Sigma in Taguig and two offices in Naga and Davao.

For its hospitality business, RLC is targeting to build more hotel properties in Visayas and Mindanao to increase its hotel room count to 3,350 this year, or 19 percent higher than 2017.