Integrated gaming resort co-developer Suntrust Home Developers Inc. is raising P7.3 billion from the issuance of zero-coupon convertible bonds to its controlling stockholder, thereby jacking up the stake held by Hong Kong-based Suncity group to 74.42 percent.
Suntrust disclosed to the Philippine Stock Exchange on Monday that it had entered into a deal to issue the bonds to Fortune Noble, a wholly-owned subsidiary of Hong Kong Stock Exchange-listed Suncity Group Holdings Ltd. which owns 51 percent of Suntrust.
“The foregoing transaction will support the development of the main hotel casino, a five-star hotel and casino project to be constructed at Manila Bayshore Integrated City in Paranaque City,” the disclosure said.
The latest deal gives Fortune Noble the right to convert the bonds into 6.636 billion common shares in SunCity at the initial conversion price of P1.1 each, representing around 47.79 percent of the enlarged issued share capital of SunTrust after such conversion.
After a review of the disclosure, the the Philippine Stock Exchange deemed the transaction to be covered its rule on additional listing of securities. As such, the PSE implemented a one-hour trading halt on Suncity from 9am to 10 am on Monday.
Previously controlled by the group of property tycoon Andrew Tan, Suntrust is now controlled by the Suncity Group through Fortune Noble.
Suncity took over Suntrust in October last year, barely two weeks after the voluntary delisting of Travellers International Hotel Group, the original developer of the Westside City group which is a partnership between the group of Andrew Tan and the Genting group.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.
For feedback, complaints, or inquiries, contact us.