Rights offer yields P2.6B for Empire East

REPORT FROM BUSINESSWORLD MID-INCOME property developer Empire East Land Holdings, Inc. raked in P2.623 billion from its stock rights offering that ended on Jan. 11. In a disclosure, the company said the 2.623 billion common shares it issued were fully taken up with Megaworld Corp., one of the stockholders of the company, availing 1.407 billion shares. The offering, which has a ratio of one share for every three shares held by stockholders, was priced at P1 per share. Andrew Tan-led Megaworld Corp. thereby increases its control in the company to "close to 60%" from 43%, Empire East President Anthony Charlemagne Yu told BusinessWorld. Listing of the company’s additional float is set Monday. Empire East earlier said it would use P1 billion of the proceeds to develop new projects. Another P800 million will be used to pay debts, while the rest will be for future land banking. Among its upcoming projects include the Little Baguio Terraces in San Juan, Pioneer Woodlands in Mandaluyong and San Lorenzo Place in Makati. Empire East has undeveloped real estate assets worth P2.76 billion. The properties, which were acquired and kept for future development, are located in Metro Manila and in the provinces of Cavite, Laguna, Batangas, Rizal and Quezon. For the three quarters ending in September 2007, the company’s net income hit P140.7 million, a 34.3% increase from P104.9 million in 2006. Earlier this year, Empire East subscribed to 65 million and two shares of Laguna BelAir School, Inc. at a par value of P1 per share. — Lovely Nica P. Lee/BusinessWorld