MJC sets rights offering, hikes capital to P500-M

Shareholders of Manila Jockey Club Inc. (MJC) have approved the firm’s planned stock rights offering and increase in its authorized capital stock from P300 million to P500 million.

Under the pre-emptive rights after, stockholders as of a record date yet to be determined by the Securities and Exchange Commission will be entitled to buy one share for every share held at P1 each.

Also approved was the company’s declaration of a 20-percent stock dividend.

MJC shareholders likewise approved the transfer of the firm’s non-core assets to a qualified company provided that the property-for-share swap will result in MJC owning the prospective company or companies.

Prior to any property-for-share swap, a due diligence study will first be conducted.

The prospective company must be solvent and should execute warranties that it does not have hidden liabilities and/or obligations. Shareholders shall likewise undertake to pay the hidden liabilities, if there are any.

MJC is in talks for a joint venture with Community Innovations Inc. (CII) for the development of a 6.5- hectare property in Sta. Cruz, Manila into a residential subdivision.

CII, the middle-income housing subsidiary of property giant Ayala Land Inc., has been tapped to make a market study on the joint development of a portion of MJC’s former racetrack into a residential enclave.

An agreement for the development of the property will be discussed and negotiated by both parties upon completion of the market study.

MJC earlier inked an agreement with the Philippine Amusement and Gaming Corp. (Pagcor) for the establishment of a casino in Carmona, Cavite. The casino will be located at the third floor of the Turf Building at the San Lazaro Leisure Park in Cavite, which is being developed into a mixed-use complex.

The park, which sits on a 77-hectare property, will replace MJC’s San Lazaro Hippodrome in Sta. Cruz, Manila. The park’s Turf Club has complete racing facilities anchored on a world-class race track designed by the Japan Racing Facilities Co. Ltd., with 1,600 stables, a 3,600-square meter grandstand and four floors that can accommodate up to 2,000 spectators.

The Carmona horse racing facility is a joint venture between MJC and KPPI Land Corp. of the Kuok Group.

Once the race track is completed this year, the company will start developing some 23 hectares of the property into a residential-gated community overlooking the race track.