THE VILLAR GROUP is reorganizing its property business, disclosing on Wednesday that Golden Haven, Inc. will take over the operations of Bria Homes, Inc.
In a disclosure to the stock exchange on Wednesday, Golden Haven said its board of directors approved the acquisition of Bria Homes from Cambridge Group, Inc., a Villar company.
The transaction was priced at P3.01 billion, comprising 9.99 million shares of Bria Homes at P301.42 apiece. This was based on the adjusted book value of Bria Homes as of end November.
Golden Haven and Cambridge Group signed the deed of absolute sale of shares for the transaction on Wednesday.
At the same time, the company’s board authorized the issuance of 150 million common shares to Cambridge group out of the unissued capital stock of Golden Haven by way of private placement. The shares were priced at P20.09 apiece for an aggregate subscription price of P3.01 billion.
Golden Haven targets to submit the listing application to the Philippine Stock Exchange by Jan. 10, 2018, with listing of the common shares on the bourse by March 30, 2018.
The company will then increase its public float to 14.83% from the current 11.38%.
The funds raised from the private placement will be used to finance Golden Haven’s acquisition of Bria Homes.
Bria Homes’ core business is in the development of mass housing projects across the country. According to its website, it currently has a total of 27 developments in areas such as Bataan, Pampanga, Bulacan, Cavite, Laguna, Camarines Sur, Negros Oriental, Cagayan de Oro, and Misamis Oriental.
“The company believes the Bria acquisition will diversify its real estate business by entering into the mass housing market, accelerate growth and enhance profitability through the creation of additional revenue streams independent of its current business, allow the company to maximize the value of its land bank by providing other avenues for its utilization,” Golden Haven said.
The company added this acquisition will also build shareholder value.
Golden Haven last September changed its corporate name, dropping the words “memorial park” in order to allow the company to expand its business outside the death care industry. The company then said it will build efforts to enter other areas of the property sector in the future.
Golden Haven booked a net income attributable to the parent of P164 million in the first nine months of 2017, 21% higher year on year, as it recorded a 19% increase in revenues to P724 million during the period.
Shares in Golden Haven jumped 9.53% or P1.74 to P20 each at the stock exchange on Wednesday. — Arra B. Francia