Empire East to raise its capital to P23.495B
The new capitalization consists of 23.495 billion shares divided into into 21.495 billion common shares and two billion preferred shares.
The subscribed portion of the increase in capital stock will be funded by proceeds of a pre-emptive rights offer to be undertaken by the company.
The increase is intended to cover the company’s planned P2.7 billion stock rights offering in the first quarter of 2008.
Of the expected sales proceeds, P1 billion will be used to fund the construction of projects, P900 million to beef up the company’s landbank, and P800 million to repay debt.
Empire East has set a P7 billion to P8 billion capital expenditure budget over the next five years beginning 2007. Of the total, P1.5 billion will go to the development of the nine-tower Pioneer Woodlands along Pioneer Avenue in Mandaluyong City and the six-tower Little Baguio Terraces on the Greenhills side of San Juan.
Woodlands, which will be linked directly to the Boni station of the MRT-3 along Edsa, will have a total of 3,000 units.
The company is bent on further increasing its landbank through outright purchases or joint venture agreements with landowners.
Empire East posted a net income of P140.67 million in the first nine months of the year, 34 percent higher than the P104.86 million recorded the same period a year ago on higher interest income.
Revenues, however, fell 10.7 percent to P598.54 million from P670.32 million a year earlier.
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