Alliance Global Group Inc., the investment holding company of the Andrew Tan Group, said Thursday its board approved its subscription to 1.38 billion common shares of its property arm, Megaworld Corp.
Alliance Global is buying the shares a total P2.61 billion, or P1.90 a share, or a five-percent premium over Megaworld’s 30-day volume weighted average price. The new shares come from the P5.5 billion increase in Megaworld’s authorized capital stock.
“The subscription is made by AGI to support growth and future business expansions of Megaworld in line with the latter’s strategies and directions,” the listed investment holding company said in a disclosure.
Megaworld has set a P55-billion capital expenditure budget this year to develop existing and new township and residential projects as wells as for investments and for land acquisition. It is looking to complete the development around 280,000 square meters of office, shopping mall and commercial retail space this year as part of its push to gross leasable space of 3 million square-meters by 2030.
