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Wednesday, September 24, 2014

Suntrust board approves P20B capital increase

Suntrust Home Developers Inc secured board approval to beef up its capital.

In a disclosure to the Philippine Stock Exchange, Suntrust said it would hike its authorized capital stock to P23 billion divided into 23 billion common shares with a par value of P1 each. The company's capital now stands at P3 billion.

The capital hike will be presented to stockholders for approval in its annual meeting on November 18.

Last year, Suntrust said its board cleared a pre-emptive rights offer to holders of its common shares at a ratio of 2.5 new shares for each share held. The offer price was set at P1 per share equivalent to the par value of the shares.

The rights shares will be issued from the P20-billion increase in Suntrust's authorized capital. The capital-raising initiative will fund various investment opportunities.

Suntrust does not have any business operations. It has a wholly owned subsidiary, First Oceanic Property Management Inc (FOPMI), which is engaged in management of residential and office buildings and private estates.

The listed firm acquired FOPMI, the property management arm of the Megaworld group, in September 2011.

Suntrust sold its 78.75 million shares in affordable housing developer Suntrust Properties Inc to Megaworld Corp for P117.81 million as part of the consolidation of the property businesses of billionaire Andrew Tan.

- Interaksyon

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