Robinsons Land Corp. (PSE: RLC) has obtained the approval of the board of directors of the Philippine Stock Exchange Inc. (PSE: PSE) to raise up to PhP20 billion through a stocks right offer (SRO). The said approval was secured on January 10, 2018, while the Securities and Exchange Commission’s (SEC) confirmation of exempt transaction covering the offer was obtained last December 14, 2017.
Summarized below are the key indicative terms and timetable of the SRO:
The proceeds from the offer will be used to finance the acquisition of land located in various parts of the country for all of the company’s business segments.
JG Summit Holdings Inc. (PSE: JGS), RLC’s controlling shareholder, has expressed its full support for the company’s proposed offer. JGS commits to purchase not just its entitlement of the rights shares, but also any unsubscribed rights shares after the mandatory second round of the SRO. Thus, if any shareholder failed to subscribe to all the rights shares, JGS, through the underwriter, will take up any remaining unsubscribed rights shares after the mandatory second round of the offer. Should JGS failed to subscribe to all the remaining rights shares, BPI Capital Corp. will take up any remaining unsubscribed rights shares pursuant to its role as underwriter.
The offer is open to existing shareholder of the company as of 31 January 2018.
RLC has appointed BPI Capital as sole issue manager, bookrunner, and underwriter.