LRWC plans P1.75-billion private placement move (Business Mirror/January 23, 2013)
February 6, 2013
Leisure and Resorts World Corp. (LRWC) plans to raise fresh funds through a private placement in a move to bankroll its additional gaming sites in the Philippines.
The company, which operates a number of casinos and other gaming sites in the country, said it will offer P1.75 billion worth of perpetual preferred shares at a dividend rate of 8.5 percent through private placement.
Proceeds of the exercise will be used to finance the construction of additional bingo sites, the Belle Grande Integrated Casino, Techzone project and Midas Hotel project.
Asian Alliance Investment Corp., which will provide financial advise on the company for the said exercise, will manage the deal.
The said private placement followed an increase in authorized capital stock from P1.6 billion to P5 billion, divided into 2.5 billion shares. The company said it will list the additional shares at the Philippine Stock Exchange, including the additional 125 million warrants. The hike in capitalization will be put up for approval during the company’s special stockholders’ meeting in March.
In November last year, the company bought a 51-percent stake in the 227-room Midas Hotel and Casino on Roxas Boulevard for P750 million.
The company signed an investment agreement with Eco Leisure and Hospitality Co. to acquire the stake in Midas Hotel operator Hotel Enterprises of the Philippines Inc. (Hepi), which used to operate the Hyatt hotel in the country.
Hepi and Eco Leisure are both led by Elizaldy Co, a prominent businessman from Bicol who owns several resorts in the country, including the Misibis Bay resort in Albay and Midas Hotel.
LRWC is effectively buying the stake once held by billionaire Lucio Co, before Elizaldy bought out the former and brought LRWC onboard the Midas Hotel. The two Cos are not related.
LRWC has an existing license agreement with the Cagayan Economic Zone Authority to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.
By VG Cabuag
23 January 2013
Category: Press Releases