Alliance Global Group Inc. (AGI) received shareholder approval for a planned warrant issuance that could raise as much as P26.7 billion in fresh capital.
During the company’s annual stockholders meeting Thursday, 89.11 percent of AGI shareholders approved the issuance and sale of warrants.
These warrants would cover up to 2.225 billion underlying common shares at a minimum price of P12 each.
AGI president and chief executive Kevin Tan said proceeds from the transaction will be used to repay existing debt and fund operational expenses.
The warrants and underlying common shares will be listed on the Philippine Stock Exchange, subject to regulatory approvals.
Warrants are financial instruments that give holders the right to buy company shares at a set price within a specific time.
Tan also announced the company further trimmed its planned capital spending for the year to P59 billion, down from a previously announced P63 billion.
“We believe there exist a lot of opportunities here and across the globe where our business can grow, especially in the areas of consumer, real estate, leisure, and tourism spaces where we have built-in competitive advantages,” Tan said.
“Our capital investments are expected to continue to focus on market expansions and strengthening our operational capacities.”
Amid the current market environment, Tan said the company is focused on optimizing revenue and preserving its profit margins.
He noted that its real estate group, Megaworld, is launching projects in phases to minimize risks and is leveraging its land bank to build in high-demand areas.
Megaworld is also adding close to 3,600 room keys as it builds new hotels in Metro Manila, Pampanga, Palawan, Bacolod, Iloilo, and Boracay.
Megaworld also intends to launch at least two more townships this year to further expand its development portfolio to 37 townships and integrated lifestyle communities, ensuring sustained growth in the future.
Meanwhile, AGI’s liquor unit has adopted cost management initiatives to ensure operational efficiencies across its business. The group’s gaming unit is boosting its operations with the recent launch of digital operations through the Newport World Casino online app, which integrates live casino games and loyalty rewards.
AGI is also set to launch boutique casino resorts in Boracay, Cebu and Westside City in Parañaque City.
