LISTED hotel and resort operator Discovery World Corp. is investing up to P762.2 million to expand its resorts and township properties business.
In a stock exchange disclosure on Tuesday, the company announced that its board of directors has approved an increase in its subscription to shares of Cay Islands Corp. by 300 million shares, priced at P1 each, totaling P300 million.
This brings the total subscription to P430 million, the company said, adding that with the additional subscription of 300 million shares, Cay Islands’ outstanding capital stock now stands at 700 million shares.
Cay Islands is a property holding and investment company. It is the owner and operator of the Vanilla Beach property and Shoppes at Vanilla Beach development in El Nido, Palawan.
In a separate regulatory filing, Discovery World said that investments in One Davao Townships Corp. had been approved.
This came after its board greenlit an increase in the subscription by 265 million shares, priced at P1 each, for a total of P265 million. This is equivalent to 88.33% of the total outstanding shares of One Davao Townships Corp.
“This acquisition is in line with DWC’s business and will create opportunities for the expansion of DWC’s resort business,” it said.
One Davao Townships Corp. is a wholly owned subsidiary of Discovery World.
The company said this acquisition would help augment working capital for the expansion of its resort business.
Further, Discovery World also said that its board had approved the subscription of five million shares to Lucky Cloud 9 Resorts, Inc. at P1 apiece, bringing its total subscription to P60 million.
The board also resolved to increase its subscription by 7.2 million shares at P1 each, or P7.2 million, in Balay Holdings, Inc.
Balay Holdings owns properties in El Nido, Palawan, and Siargao. Its properties are being developed for staff housing for the future development of the Discovery World group.
At the local bourse on Tuesday, shares in the company closed one centavo, or 0.83% higher, to end at P1.22 apiece. — Ashley Erika O. Jose
