MANILA, Philippines - The operator of the country’s stock exchange has flagged the P270-million share sale of upscale property developer Alphaland Corp. that was exclusively targeted for minority stockholders.
In a public notice, the Philippine Stock Exchange (PSE) said “the terms and conditions of the said stock rights offering, as published in several newspapers and in various related advisories that may be circulating among the trading participants, do not comply with the applicable rules of the PSE.â€
“The PSE has properly communicated to Alphaland the said non-compliance with the PSE’s rules for stock rights offerings,†it added.
Late last month, Ongpin-led Alphaland announced its plan to sell 108 million new shares, which is expected to raise P270.8 million in gross proceeds.
The stock rights offering, exclusively for shareholders that own less than 10 percent of Alphaland shares, ran from Feb. 3 to 7.
Alphaland earlier said the stock rights offering will give minority shareholders a chance not to be diluted following a billion-peso capital infusion from large stakeholders early in January.
The high-end property developer allowed minority shareholders to buy new Alphaland shares at a heavy discount of P2.50 apiece compared with the closing price of P17.48 on Jan. 20, when its shares were suspended from trading.
Proceeds will be used to partly fund the working capital and capital expenditure requirements of the company. Any shares not taken up in the offering will be acquired by underwriter Unicapital Securities Inc.
“We will appropriately inform the trading participants and the investing public of developments on the matter,†the PSE said.
Early last month, Alphaland issued new shares in line with a capital call to ease the effects of a credit crunch experienced by the company.
Given time constraints, the capital call was made only to owners of more than 10 percent via a private placement. The transaction allowed the group of former Trade Minister Roberto V. Ongpin to secure 50.57 percent of Alphaland’s outstanding shares after London-based investment fund manager Ashmore Group ignored the capital call.
Prior to the transaction, the Ongpin Group owned 21.73 percent of Alphaland while Ashmore Group controlled 69.37 percent, which is now down to 24.41 percent.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between the Ashmore Group and Ongpin’s RVO Capital Ventures.
Alphaland is the company behind the P2-billion Alphaland Marina Club and the 32-hectare Bay City development along Manila Bay, the P4-billion Balesin Island Club in Quezon province, and the Alphaland City Club in the Makati central business district.