Corporate News

Discovery World pours P120M in 3 Palawan firms

Posted on June 28, 2016

DISCOVERY WORLD Corp. is further positioning itself in Palawan, investing P120 million in three companies owning real properties in the country’s fast growing travel destination.

In separate disclosures to the Philippine Stock Exchange on Monday, the hotel and resort operator announced its ongoing acquisition of shares in Sonoran Corp., Palawan Cove Corp. and Long Beach Property Holdings, Inc.

Discovery World will subscribe to 100 million shares in Sonoran, 10 million shares in Palawan Cove and 10 million in Long Beach for P1 apiece, a price based on the par value of the shares.

Sonoran and Palawan Cove are both subsidiaries of Discovery World. The acquisition is intended to increase their working capital. Discovery World’s acquisition of shares in Long Beach, on the other hand, will create opportunities for the expansion of its resort business.

The listed company will make an initial payment of P25 million for its subscription to additional shares in Sonoran. The balance is payable upon the call of the subsidiary’s board of directors.

For the acquisition of shares in Long Beach, Discovery World will initially release P2.5 million. Meanwhile, the company will settle the consideration for the Palawan Cove shares upfront upon exception of the subscription agreement.

The acquisition of the Sonoran shares depends on the Securities and Exchange Commission’s approval for the increase in its authorized capital stock to P500 million from P100 million. -- Keith R. D. Mariano