LISTED D.M. Wenceslao & Associates, Inc. (DMW) subscribed to P232.17-million worth of shares in Bay Resources and Development Corp., providing fresh capital and securing a majority stake in the latter.
In a stock exchange disclosure on Monday, DMW said its board of directors approved the company’s subscription to 164,106 new common shares in BRDC at P1,414.74 per share.
“BRDC issued 164,106 new common shares to DMW, increasing DMW’s ownership in BRDC to 51% from 50%. This gives DMW a majority stake in BRDC,” the disclosure said.
In 1992, DMW entered into a joint venture agreement with the Armed Forces of the Philippines Retirement and Separation Benefits System to form BRDC, with each owning a 50% interest.
According to DMW, the latest transaction is set to infuse capital into BRDC for “general corporate purposes and developments.”
“DMW, through its increased stake in BRDC, is expected to benefit from BRDC’s developments and growth plans,” DMW said.
BRDC was established to acquire, develop, and market real estate properties. The company currently owns parcels of land in Aseana City, Parañaque, and has existing land lease contracts.
As of September, DMW logged a 13% increase in its net income to P1.3 billion from P1.1 billion a year earlier due to “robust leasing operations.”
The company’s leasing revenues surged 15% to P1.8 billion while residential revenues improved to P827 million.
Shares of DMW at the local bourse fell five centavos or 0.8% to P6.20 apiece. — Revin Mikhael D. Ochave