Corporate News

By Krista A. M. Montealegre, Senior Reporter

Tiu family consolidates resorts assets under listed Discovery World Corp.

Posted on January 05, 2016

THE Tiu family has consolidated its resort assets under listed Discovery World Corp. in separate transactions valued at nearly P220 million.

The upscale resort developer told the stock exchange yesterday it acquired 98.87% of Cay Islands Corp. for P192 million and 92.59% of Sonoran Corp. from The Discovery Leisure Company, Inc. (TDLCI) for P25 million.

“All our resort assets are now transferred to Discovery World,” DWC Chief Finance Officer Anna May B. Nieva said in a telephone interview yesterday.

TDLCI, the hotel management arm of the Tiu-led JTKC Group of Companies, is a key stockholder of Discovery World with a 24.82% stake. The group has investments in several industries, including real estate, hospitality, financial services, mining and manufacturing.

“This acquisition is in line with the business of the DWC and will create opportunities for expansion of the corporation’s resort business,” the listed company said. DWC is the ticker symbol of Discovery World.

Cay Islands owns a five-hectare (ha) property in El Nido, Palawan, while Sonoran owns a 57-ha property in La Trinidad, Benguet, Ms. Nieva said.

Discovery World will commence the development of the Cay Islands property into a 166-room resort in May, while the La Trinidad property will be converted into an 80-room resort starting in 2018, Ms. Nieva said, adding that construction will take two years.

Discovery World, which made its stock market debut in 2013 with a P551-million initial public offering, is engaged in the hotel and resort business through Discovery Shores Boracay and Club Paradise. It also owns Discovery Fleet Corp., which operates two cruise boats.

Discovery World halved its net profit to P24.43 million in the nine months through September from P48.04 million a year ago on higher operating expenses and finance costs.

Shares in Discovery World were last traded on Dec. 22 at P1.70 each apiece.