LRWC to raise P4.4B from private placement
By Arra B. Francia, Reporter
LEISURE & Resorts World Corp. (LRWC) has approved the issuance of shares via private placement to several investors, which could bring in P4.38 billion in fresh capital.
In a disclosure to the stock exchange on Tuesday, the listed gaming firm said its board of directors has approved and authorized the issuance of 1.22 billion common shares out of its unissued capital stock.
The shares were priced at P3.60 each, representing a premium over the firm’s closing price of P3.30 on Nov. 29, 2018.
The shares were issued to six firms, namely Fortunegate Holdings Philippines, Inc., Millennium Pan Asia Business Management Services, Inc., XII Capital Inc., and Diamond Fortune Holdings, Inc. with 230 million shares each. Leisure Advantage, Inc. was issued 176.65 million shares, while Euphonious Holdings, Inc. was issued 121 million shares.
Fortunegate Holdings, Millennium Pan Asia, and Diamond Fortune also have interests in casino operations in the country and abroad.
LRWC will use the proceeds of the private placement to refinance existing debt and for general corporate purposes.
The company is currently planning a $550-million integrated resort in Boracay in partnership with Macau-based casino giant Galaxy Entertainment Group.
The 23-hectare project will also house a casino, although the company earlier said that the casino component will only cover 7.5% of its total floor area. This means that bulk of revenues from the project should come from the resort, which will have hotel rooms and other amenities such as wellness centers, bars, lounges, and fine-dining restaurants.
The project will target families and Galaxy’s database of clients across the region, as well as travelers and Chinese tourists in Boracay.
LRWC targets to open the Boracay resort by 2021.
Incorporated in 1957 originally as Atlas Fertilizer Corp., LRWC underwent a corporate restructuring program that changed its primary purpose to that of a real estate firm focused on the leisure segment.
Its subsidiaries include AB Leisure Exponents, Inc., which operates traditional, electronic, pulltabs, and rapid bingo games. It also has a 69.68% interest in First Cagayan Leisure & Resort Corp., which has license to develop, operate, and conduct internet and gaming enterprises in the Cagayan Special Economic Zone Free port.
LRWC’s net income attributable to the parent fell 27% to P266.04 million in the first nine months of 2018, amid a flat revenue growth at one percent to P7.42 billion in the same period.
Shares in LRWC jumped 3.20% or 12 centavos to close at P3.87 each at the stock exchange on Tuesday.