Suntrust plans P6-B rights offer

MANILA, Philippines - Suntrust Home Developers Inc., an associate firm of Megaworld Corp., is looking to raise about P6 billion from a planned stock rights offering to fund the acquisition of more properties.

In a disclosure to the Philippine Stock Exchange, Suntrust said it intends to offer 5.265 billion common shares at P1 each.

The firm said the rights shares would be issued from a P20-billion increase in the company’s authorized capital stock approved by its stockholders in November last year.  

Suntrust did not disclose the offer period for the shares, but said shareholders would be entitled to subscribe to 2.5 offer shares for every one share owned.

BDO Capital & Investment Corp. has been tapped as underwriter for the transaction.

Megaworld, in a separate disclosure, said it has committed and undertaken to subscribe to its rights offer entitlement and to any rights shares not taken up by other shareholders of Suntrust.

 “This will ensure that the 5.625 billion shares underlying the rights offer will be fully subscribed,” said the property giant, is a substantial shareholder of Suntrust with a 42.48-percent interest.

Suntrust president Ferdinand B. Masi earlier said proceeds of the rights offer would be used primarily to finance acquisition of properties.