EEI to raise P6 bilyon for real estate, power projects

MANILA, Philippines —  EEI Corp. is raising P6 billion via the issuance of preferred shares to finance its real estate and power projects.

The listed construction giant said its board gave the green light for the company to issue 60 million preferred shares at P100 apiece by way of private placement.

EEI said the preferred shares will be cumulative, non-voting, non-participating, non-convertible and non-reissuable.

The listed company intends to use the net proceeds of the offer to fund its real estate and power initiatives as well as for general and working capital requirements.

EEI, whose principal stockholders are RYM Business Management Corp. of House Speaker , House of Investments of the Yuchengco Group, Industry Holdings and Development Corp. of the Chua Group and Shenton Resources, is looking to partner with PH Resorts Group Holdings Inc. of Davao-based businessman Dennis Uy for the development of the unfinished Emerald Bay Resort in Cebu.

PH Resorts’ parent company, Udenna Corp., recently executed a memorandum of understanding (MOU) with EEI concerning the Emerald Bay Resort and Casino project.

The MOU provides an avenue for a potential partnership between the company and EEI upon the execution of the definitive agreements as well as subject to the fulfillment of conditions precedent and regulatory approvals, if any.

EEI also recently announced that it is investing P3.85 billion to its various subsidiaries to support their growth initiatives.

These include investments of P1.7 billion in subscribed capital to EEI Power Corp. as well additional investment of P1 billion to EEI Ventures Inc.

As the company’s energy arm, EEI Power is involved in the operation and management of power generating stations of manufacturing companies, while EEI Ventures is a subsidiary incorporated early this year to acquire and hold interests in various potential businesses.

EEI is 93-year-old company that has a broad range of construction and engineering services, with expertise in the construction of infrastructure, buildings and industrial and electromechanical facilities.