A UNIT of PTFC Redevelopment Corp. (TFC) will be subscribing to P60 million worth of shares in Batangas-based Kombi Land, Inc. (KLI), in a bid to improve its financial standing.
In a disclosure to the stock exchange last Friday, the listed property developer said its wholly owned subsidiary Baesa Redevelopment Corp. (BRC) will subscribe to a total of 49,000 shares in KLI.
To complete the transaction, KLI would have to secure approval of the Securities and Exchange Commission for an increase in its authorized capital stock. Upon closing, BRC will hold 19.68% of KLI’s outstanding capital stock.
“BRC’s investment in KLI is expected to improve the financial standing of BRC,” TFC said in the disclosure.
Following the disclosure, the Philippine Stock Exchange has implemented a suspension on the trading of TFC shares, citing that the transaction falls under the description for substantial acquisitions and reverse takeovers. The trading suspension started on Monday (Jan. 22) and will continue until the company is able to comply with PSE rules for such transactions.
Shares in TFC were priced at P35.95 apiece prior to the trading suspension.
Incorporated in 1951 originally as the Philippine Tobacco Flue-Curing and Redrying Corp., TFC changed its primary purpose to that of a real estate company in 2014, in the process changing its name to the present one.
The company now operates commercial, industrial, mini and personal storage spaces in the country. TFC offers a total of 75,000 square meters (sq.m.) in Quezon City and around 10,500 sq.m. in Ilocos Sur for warehousing and office rental needs.
BRC, on the other hand, was formed in 1992 and has since completed a commercial complex called Baesa Town Center (BTC) in Quezon City. BTC offers office, retail, commercial, and mini self-storage services.
TFC saw an 8% decline in its attributable profit in the three months ending November 2017 to P14.9 million, amid a 19% increase in revenues in the same period to P54.1 million. — Arra B. Francia
