Discovery World infusing P577 million fresh capital into units

MANILA, Philippines — Discovery World Corp. (DWC), the listed hospitality company of the Tiu family, is infusing P577 million in fresh capital into various subsidiaries to beef up the group’s resort business.

DWC is injecting additional investments of P300 million in Cay Islands Corp. (CIC), P265 million in One Davao Townships Corp. (ODTC), P7.2 million in Balay Holdings Inc. (BHI) and P5 million in Lucky Cloud 9 Resorts Inc. (LC9), the company said in separate stock exchange filings yesterday.

For CIC, DWC will subscribe to additional 300 million shares at P1 apiece to be used as working capital.

The subscription is conditioned upon the application and approval of the increase in authorized capital stock of CIC to P700 million from P300 million.

In December last year, DWC’s board also approved the subscription of P130 million worth of CIC shares, bringing the total amount of the subscription to P430 million.

“This acquisition will help augment working capital and create opportunities for expansion of the corporation’s resort business,” DWC said.

CIC is a property holding and investment company which owns and operates the Vanilla Beach property and Shoppes at Vanilla Beach development in El Nido, Palawan.

DWC said that CIC is slated to launch a new hotel and hostel project on the Vanilla Beach property called Kip&Kin.

In line with the expansion of DWC’s resort business, the company is also increasing its subscription by 265 million shares in ODTC, a holding company for properties being developed in Davao.

DWC is also subscribing to an additional P7.2 million worth of shares in BHI to support its working capital.

BHI owns properties in Palawan, Surigao del Norte and Palawan which are being developed for staff housing for future developments of the DWC Group in their respective locations.

The listed company is also investing in additional P5 million worth of shares in LC9 on top of the P55 million approved subscriptions in December last year.

LC9, a company engaged in real property holding and development as well as hotel operations management, is currently developing a 26,127-square meter property Siargao, Surigao del Norte.