EIB Realty to raise P356M via warrants issue

EIB Realty, the property unit of Export & Industry Bank, plans to raise P356 million through the issuance of warrants to its shareholders to generate funds for its various projects and pay off obligations.

In a disclosure to the Philippine Stock Exchange, EIB Realty said shareholders approved management’s plan to issue warrants to the existing holders of the 1.37 billion common shares.

Under the plan, three warrants will be issued for every one EIB share. The holder of one warrant will entitle him the right to purchase one EIB common share at an exercise price of P0.26 each share. 

EIB said the warrants may be exercised within three years from the date of issuance and will be listed on the PSE.

The issuance will take effect only upon approval by the Securities and Exchange Commission of the amendment of EIB’s articles of incorporation reflecting the increase of its authorized capital stock by P2.7 billion.

EIB shareholders also approved the change of the company’s name to Arthaland Corp.

In the nine months ending September this year, EIB incurred a net loss of P39.11 million, a reversal of the P105.98-million net profit reported in the same period a year ago.

Total expenses rose to P214.29 million from only P23.03 milion due primarily to the recognition of depreciation of the building amounting to P48.27 million and miscellaneous expenses of P89.29 million.

On a quarter-to-quarter basis, total assets of the group for the third quarter of the year amounted to P3.61 billion or P3.08 billion higher compared to the total assets of P529.77 million as of the same period in 2007. This was brought about by the acquisition of Exportbank Plaza amounting to P2.62 billion.    — Zinnia dela Peña