Boulevard Holdings to raise P175M via rights offer

The Panlilio-owned Boulevard Holdings Inc. (BHI) is hoping to raise between P100 million and P175 million through a stock rights offering to fund the construction of Fridays Puerto Galera Beach Resort and the working capital requirements of its subsidiaries.

Based on the registration statement filed with the Securities and Exchange Commission (SEC), BHI is selling a total of 500 million common shares, coming from its unissued capital stock at P0.20 to P0.35 each share.

Stockholders can buy one share for every three shares held as of May 3, 2007.

The bulk of the proceeds, or about P90 million, has been set aside for the construction of Fridays Puerto Galera Hotel and Beach Resort.

After the rights offer, the net tangible book value of the company will increase to P377.55 million or P0.19 per share to P452.55 million or P0.23 per share.

Incorporated on July 13, 1994, BHI has interests in companies involved in information technology as well as in hotels, leisure and tourism-related businesses.

BHI’s IT segment for the six-month period ending Nov. 30, 2006 registered sales of P80.14 million or 12 percent lower than the previous level due to stiff competition. Management, however believes that a combination of cost savings measures and expected market growth of other major brands as well as introduction of new product lines will allow the segment to recover and improve its revenues and profitability.

The company’s hotel, leisure and tourism-related business segment contributed by Friday Holdings, registered revenues of P60.91 million.

BHI’s board earlier approved the acquisition of a piece of property in the resort town of Puerto Galera in Oriental Mindoro province from its majority shareholder, JP Guilds Inc.

The majority shareholder of JP Guilds is Jose Marcel Panlilio, the chairman and president of BHI. The acquisition will be paid with 500 million common shares at P0.10 apiece out of the increase in BHI’s authorized capital.