land development
A buyer of a controversial parcel of land in Pasig City was stunned by the apparent corruption in a government agency. This despite the land being slated for development — a project expected to create jobs and generate billions for the government.
“The buyer of the two-hectare property wants to finalize the deal once and for all. He said he was willing to settle for P17 billion to proceed with the development,” a source told Daily Tribune. “But someone from a government agency approached him, demanding a P30-billion settlement — almost double the original amount.”
When asked about the inflated figure, the agent reportedly said, “The P30 billion will be divided three ways.”
This is typical of under-the-table deals, often referred to as “SOP” (standard operating procedure) that plague contracts and undertakings involving the government.
The Securities and Exchange Commission (SEC) has favorably considered the offering of preferred shares by Ayala Corporation up to P20 billion.
In a meeting on 27 May, the SEC resolved to render effective the registration statement of Ayala covering the re-issuance of five million preferred B shares, with an over-allotment option of up to five million shares, subject to the company’s compliance with specific remaining requirements.
Ayala will offer the preferred shares at P2,000 apiece. Assuming the over-allotment option is fully subscribed, the listed conglomerate could net up to P19.86 billion from the offer.
The proceeds will be used to repay its short-term bank loans and to fund an expansion program.
The offer shares are expected to be reissued and listed on the main board of the Philippine Stock Exchange on 18 June, according to the latest timeline submitted to the SEC. Trading is expected to start on the same date.
The inclusion of an over-allotment option (also known as a greenshoe option) for an additional five million shares provides flexibility to meet excess demand. If investor interest is strong, Ayala can increase the offering size without requiring separate regulatory approval, thereby maximizing the capital raised.