Friday, August 31, 2007 Hotel company to raise capital stock to finance investments
THE board of directors of the Waterfront Philippines Inc. (WPI) has agreed to increase its authorized capital stock from P5 billion to P10 billion this year.
WPI board chairman Renato Magadia told its shareholders during the firm’s annual stockholders meeting at the Waterfront Cebu City Hotel and Casino (WCCHC).
He said the increase in capitalization was for hotel improvements and various investments of the corporation in the future.
The WPI board decided to hike its capital stock despite opposition from a minority stockholder.
Stockholdings
Lawyer Rolando Lim, a minority stockholder of WPI, said the decision “will diminish his stockholdings.”
Lim learned from the board that only P2 billion of the P5 billion approved capital stock of the company is subscribed or fully paid out.
He asked the board to reconsider its decision to expand its capital base until the subscription of the approved capital stock would rise to 50 percent.
“I am not trying to question the soundness of the board to increase the capital stock and I am willing to follow the wisdom of the board, only that I have a different view,” Lim said.
Magadia assured Lim that all WPI stockholders will retain their shareholdings.
He said WPI’s capitalization increase is still waiting the approval of the Securities and Exchange Commission and the Philippine Stock Exchange.
WPI reported that revenues from hotel operations in 2006 increased to P1.85 billion from the P1.79 billion in 2005. It earned a consolidated net income of P18.24 million.
The Gatchalian-led hotel ventures in Cebu include WCCHC and Waterfront Airport Hotel and Casino in Lapu-Lapu City. (MMM)
