GMA News Online

GT Capital says IPO money largely went to Federal Land

April 15, 2013 1:16pm
GT Capital Holdings Inc., the investment holding firm of banking tycoon George S. K. Ty, on Monday disclosed that a bigger portion of the proceeds that it raised from its maiden share sale was used for additional investment in Federal Land Inc. and to boost the property company's capital.

Through its initial public offering, GT Capital raised P15 billion in gross proceeds and P13.86 billion in net proceeds.

In a statement to the Philippine Stock Exchange, GT Capital said it paid P2.7 billion for the acquisition of an additional stake in Federal Land, while P3.8 billion was given to the property company to finance key growth projects.

The GT Capital board decided to settle the P4-billion five-year term loan with Metropolitan Bank and Trust Co., the bank owned by Ty, to save on the annual guarantee fee amounting to P31.5 million due in June.

The IPO prospectus of GT Capital noted it would allot P2.8 billion out of the proceeds for the pre-payment of the P2-billion Union Bank loan and P800 million partial payment of GT Capital for its P5-billion notes facility maturing in 2013.

Meanwhile, P893 million was used to buy 4.6 percent of the Global Business Power (GBP) from Global Business Holdings, P663 million for GBP's equity call to fund the Toledo plant expansion, P2.32 billion to acquire some 66.145 million GBP shares representing 12 percent of GBP and another P994.12 million for Toledo plant expansion. — VS, GMA News
Go to comments

We welcome healthy discussions and friendly debate! Please click Flag to alert us of a comment that may be abusive or threatening. Read our full comment policy here.
Comments Powered by Disqus