LRWC seeks stockholders’ approval for $1-B project

MANILA, Philippines - Hotel and recreation firm Leisure & Resorts World Corp. (LRWC) is seeking shareholders’ approval for several corporate moves that will allow it to pursue the development of a $1-billion casino complex along Manila Bay.

In a regulatory filing, LRWC said it set a special stockholders‘ meeting on March 22 to secure the consent of stockholders.

Specifically, the listed firm plans to increase its authorized capital to P5 billion divided into 2.5 billion common and 2.5 billion preferred shares, up from the current P1.6 billion.

To facilitate the capital hike, LRWC announced a 200-million stock dividend and plans to raise P1.75 billion through preferred shares.

LRWC said it is seeking “approval of the issuance and offer of 1.75 billion perpetual preferred shares and warrants equivalent to 87.5 million common shares.”

“The preferred shares may be issued in tranches or series and shall be non-voting, non-participating, entitled to preferential and cumulative dividends at the rate not exceeding 12 percent per annum,” it added.

The company earlier tapped Asian Alliance Investment Corp. as the financial advisor for the private placement.

LRWC earlier said proceeds from the P1.75-billion issuance of preferred shares to private investors will be used to finance the acquisition of additional bingo sites, the construction of Belle Grande Integrated Resort and Casino and the development of the Techzone project and Midas Hotel.

The $1-billion gaming complex on reclaimed land along Manila Bay was originally a partnership between Belle Corp. of the family of mall and banking tycoon Henry Sy and bingo operator LRWC.

LRWC, which will invest P3 billion for the casino project within the 100-hectare Entertainment City, turned over to Macau casino giant Melco Crown Entertainment Ltd. the task of managing and operating the integrated casino and hotel complex in exchange for a share in the project’s earnings.

The casino project, which had been sidelined due to financial issues, is targeted for opening in the first half of 2014.

It will be the second complex to open in the area groomed to become the Philippines’ version of the Las Vegas strip, next to port mogul Enrique Razon’s Solaire Casino & Resort that will start operations in March.