Robinsons Land to hike public float, to conduct secondary offer

An article published in The Business Mirror, August 29, 2006
By Honey Madrilejos-Reyes

THREE Gokongwei-controlled companies—JG Summit Holdings Inc., JG Summit Capital Services Corp. and Universal Robina Corp. (URC)—would be selling part of their shareholdings in Robinsons Land Corp. (RLC) to the public.

These companies would combine for the sale of 40,550,400 secondary shares, which would be sold to the trading participants of the stock exchange.

The move is part of the additional sale of shares by RLC as a way of increasing its public float. The listing of the shares is scheduled on October 5.

Apart from the partial sale of the shareholders' stakes in RLC, up to 770,585,800 common shares would also be offered and sold to international investors.

With a par value of P1 each, the new common shares would be sold at a price based on the volume weighted average trading price of the shares on the stock exchange for the 10 trading days ending on September 22, subject to a discount of up to 10 percent.

The share price of RLC is currently leveling at P12.25 apiece.

RLC has tapped UBS Investment Bank as its sole international underwriter and bookrunner while ATR Kim Eng Capital Partners Inc. is its domestic underwriter.

International roadshow would start on September 11 until September 22 while the domestic underwriter's offer period would begin on September 27 and will end on September 29.

There would be a trading halt on RLC shares beginning September 25 until October 4.

RLC is the second subsidiary of the Gokongwei group that would do a secondary offering. The first was its food unit URC where it raised proceeds of P10.8 billion and raising its public float to 40.8 percent.

In an earlier interview, RLC president Lance Gokongwei said the company's secondary offering would

“We are planning to increase the free float of RLC to reflect the real value of the company,” he said.

The proceeds would be used for the expansion of its malls, hotels and other property development projects.

“We believe that the current share prices of our subsidiaries are undervalued and do not reflect the real prospects of our companies,” Gokongwei added.

This year, the company is spending a capital expenditure of P7 billion from P3.5 billion in 2005.
 

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