Enchanted Kingdom Inc. is planning to increase its capital to P1 billion, from P500 million, to partly fund its expansion project this year, informed sources told The STAR.
Sources said the company will need about P60 million for capital expenditures in the second half of the year to improve the park's facilities.
The P60-million capex for this year, sources said, will be internally-generated or will be funded through infusion of capital from existing shareholders of the company.
EK is owned by C & H Holdings (owned by the Mamon), 23 percent; Armed Forces of the Philippines Retirement Separation and Benefit System (AFP-RSBS), 26 percent; Nomura Japco, 16 percent; Q Capital owned by the Mercury Drug Group, 12 percent; Philippine National Bank, 12 percent; and the remaining shares owned by Amtrust Financial Consultant.
EK has been in the market for a strategic partner since last year when it announced that it would be undergoing a private placement worth P1.2 billion some time mid-1999.
Proceeds from the private placement were supposed to fund the construction of additional amenities in the park's vicinity such as putting up a hotel.
"There are still enough land for us to develop," the sources said, adding that of the 15 hectare EK-property only 10 hectares are fully-developed.
However, sources declined to give details of what happened to the private placement.
It was learned that EK has also been undergoing financial restructuring and is preparing a rehabilitation plan to be submitted to its various creditor banks.
Based on its five-year draft rehabilitation plan. EK will undertake refurbishing of its existing rides in the second half of this year. Next year, the company would try to convert some of its rides and recreation facilities into a more advanced version.