ROBINSONS Land Corp. (RLC) said its board of directors has approved in principle the company’s plan to raise up to P20 billion in fresh capital from a stock rights offering.

“RLC intends to use the majority of its net proceeds from the Offer to finance the acquisition of land located in various parts of the country for all its business segments,” the company said in a disclosure to the stock exchange on Friday.

The company said the rights offer, which was approved by the board on Nov. 13, 2017, has an entitlement ratio of one rights share for every 3.6 to 4.3 common shares, approximately.

It has yet to determine the number of shares to be offered, the ex-rights date, record date as well as the start and end of the offering period. But the company said the number of shares to be offered is approximately 950 million to 1.1 billion shares.

On Friday, shares in RLC fell 14.63%, or P3.60, to P21 each.

RLC, the real estate arm of Gokongwei-led JG Summit Holdings, Inc., is one of the country’s leading property developers based on revenues, number of properties and project size.

It closed 2016 with four business divisions: commercial centers, residential, office buildings and hotels.

The company is involved in the development and operation of malls and hotels. It also builds mixed use properties, office and residential buildings, as well as land and residential housing, including socialized housing in cities and other urban areas.

So far this year, it has announced a fifth business division: infrastructure and integrated business unit, which will focus on vast mixed-use developments, real estate-related infrastructure projects including reclamation projects, and development of warehousing facilities. — Victor V. Saulon

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