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MHC seeks to raise P1.2B from private placement

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MABUHAY Holdings Corp. (MHC) plans to raise P1.2 billion through private placement, it told the stock exchange late Tuesday.

The listed firm said in a disclosure that its board of directors has approved the issuance of 1.2 billion shares from the unissued portion of its present authorized capital stock to any interested investor at P1 per share.

The terms and conditions will be decided upon by the president of the company.

The Philippine Stock Exchange, Inc. implemented an hour-long trading suspension of MHC shares on Wednesday morning, as it ruled that the disclosure is covered by its rules on the additional listing of securities.

Incorporated in 1988, MHC operates as a holding firm with core interests in the acquisition and disposition of investments in securities, stocks, real and personal properties, and other kinds of properties and investments in other entities.

The company’s subsidiaries and affiliates include T&M Holdings, Inc., M&M Holdings Corp., Tagaytay Property Holdings Corp., The Taal Company, Inc., The Angeles Corp., and Mindanao Appreciation Corp.




MHC previously had a 29.62% stake in IRC Properties, Inc., now called Philippine Infradev Holdings, Inc. It reduced its stake in the firm to 11.4% in December 2018, and has since planned to focus on the acquisition of properties for rental properties to maintain its operations.

“Management believes that this move is strategic and will be beneficial for the group in the long run. The group intends to become more liquid and flexible while pursuing bigger urban real property development projects with its foreign business partners,” the company said in its 2018 annual report.

MHC booked a net loss attributable to the parent worth P91.68 million in the first quarter of 2019, coming from an attributable profit of P4.71 million in the same period a year ago. This came amid a 23% increase in gross revenues to P2.26 million.

Shares in MHC soared 15% or nine centavos to close at 69 centavos each at the stock exchange on Wednesday. The company’s market capitalization stands at P720 million. — Arra B. Francia

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