Alliance Global Group Inc. (AGI) of businessman Andrew Tan is putting in an additional P2.61 billion in fresh capital in its property arm Megaworld Corp. via a shares subscription.
AGI said in a disclosure to the stock exchange Thursday its board approved the subscription to 1.375 billion shares in Megaworld at subscription price of P1.90 apiece.
“The subscription is made by AGI to support growth and future business expansions of the corporation in line with the latter’s strategies and directions,” the conglomerate said.
The P1.90 per share subscription price, AGI said, represents a 5-percent premium over Megaworld’s 30-day volume weighted average price (VWAP).
Megaworld earlier obtained its board and shareholders’ approval to increase its authorized capital stock by P5.5 billion to P45.7 billion from P40.2 billion.
AGI allocated P75 billion for 2024 capital expenditure to support the expansion plans of its core subsidiaries.
AGI also has investments in liquor business through Emperador Inc., gaming and leisure through Travellers International Hotel Group Inc. and quick service restaurant through Golden Arches Development Corp., the local master franchise holder for fast-food giant McDonald’s.
Megaworld plans to spend P55 billion in capital expenditures as part of its P350-billion five-year capex program that began in 2023.
It earlier reported plans to expand its leasing portfolio to 3 million square meters (sq. m.) of gross leasable area (GLA) for both office buildings and malls by 2030. This would be 52 percent higher than the company’s total leasing portfolio as of end-2023.
The company also plans to double its hotel portfolio by 2029 by adding 4,100 room keys.
Bulk of this year’s capital spending will be used to to develop its existing and upcoming townships, residential projects, investment properties, as well as land acquisitions.
Megaworld has 31 master‐planned integrated urban townships, integrated lifestyle communities and lifestyle estates across the country.
The share price of Megaworld closed at P1.80 on Thursday, up 2.27 percent from previous day’s close.