By Denise A. Valdez Reporter
THE plan of Manila Bay Development Corp. (MBDC) to use Supercity Realty Development Corp. (SRDC) as vehicle for a backdoor listing at the Philippine Stock Exchange (PSE) is no longer pushing through.
In a stock exchange disclosure yesterday, listed SRDC said it received a letter from MBDC on Monday indicating it is withdrawing its plans due to market volatility.
“The target new investors, MBDC and (its president George T. Chua), communicated today that due to unfavorable market conditions, they have decided not to proceed with the Property-for-Share Swap Agreement and that the backdoor listing will no longer push through,” SRDC said in the minutes of its annual stockholders’ meeting submitted to the PSE.
As a result, SRDC said it is no longer increasing its authorized capital stock and issuing new shares, which it initially planned to do to accommodate the backdoor listing of MBDC.
“SRDC shall continue to serve institutional or corporate clients and focus on the construction of horizontal residential house and land development works for residential subdivisions,” it added.
SRDC first announced it May that its board of directors approved increasing the company’s authorized capital stock to P1.5 billion divided into 1.5 billion shares from P155 million divided into 155 million shares.
It was also planning to create 990 million new common shares in the firm which the new investors will subscribe to acquire 90% of the company’s resulting outstanding capital stock.
In exchange, MBDC would be giving SRDC 12 parcels of land located within the reclamation area in Parañaque City which has a total land area of 227,510 square meters. SRDC was planning to use it as source of recurring rental income, considering the location’s proximity to several commercial sites.
SRDC’s business is primarily in real estate development, with activities generally involving serving as contractor for land development and housing projects.
MBDC, on the other hand, is focused on developing and leasing reclaimed land in Parañaque City.
SRDC posted a net income of P11.46 million in the first nine months of the year, surging from P1.41 million a year ago, amid an almost five-fold growth in its revenues to P157.91 million.
