Philippine horseracing firm, Manila Jockey Club (MJC), recently listed nearly Php 300 million (US$ 12.9 million) worth of common shares on the Philippine Stock Exchange to fund its investment in a subsidiary.
In a statement released to the local bourse, MJC said that proceeds from the listing "will be used to pay subscription to 107 million shares of subsidiary MJC Investment Corp. valued at Php 80.52 million (US$ 1.9 million)". In addition, MJC will be using part of the proceeds to pay off short-term bank loans while a remaining Php 39.20 million will be used by the firm as working capital for the year.
"The shares, valued at Php 1 each, were fully subscribed after its listing at the Philippine Stock Exchange with Php 6.2 million counted as offer-related expenses."
The gaming company, synonymous with horseracing in the country, owns and operates the San Lazaro Leisure Park, a horseracing venue which it relocated to nearby Cavite province from its original track in downtown Manila. It also operates offtrack betting stations. The relocation of its racetrack is part of MJC's 10-year development which will also see it develop its former track into a township project after receiving approval to reclassify it as a special economic zone from the Philippine Economic Zone Authority (PEZA).
The renamed San Lazaro Tourism and Business Park is envisioned to have a 250-room hotel and will have a casino facility as approved under a deal MJC made with state gaming firm Philippine Amusement and Gaming Corporation (PAGCOR). The hotel will be Mercure-branded and is a joint undertaking by MJC and Accor Group affiliate, AAPC Singapore Pte. Ltd.
Source: BusinessWorld, May 31, 2011
Posted: June 1, 2011
