Hong Kong-listed Suncity Group announced that it will increase its share in its Philippines subsidiary, SunTrust, from 51 per cent to some 74.4 per cent.
In February SunTrust signed a lease agreement to use a site in Manila, where an integrated resort known as Westside City Resorts will be developed.
In a Hong Kong Stock Exchange filing, Suncity indicated it would subscribe PHP7.3 billion (MOP1.1 billion/US$144.7 million) in zero coupon convertible bond for cash through its subsidiary Fortune Noble Limited.
Suncity considered that the subscription will be applied by SunTrust for the development of the Westside City Resorts and to minimise the risk of the Group’s
percentage interest in SunTrust from being diluted in the future.
SunTrust still needs to obtain the necessary consent, approval and waiver from SEC and other relevant governmental authority in the Philippines to sign the agreement.