Acesite (Phils) Hotel Corp. decided to defer its planned stock rights offering due to unfavourable market conditions.
The company’s board of directors decided to postpone its plans of offering 344.747 million common shares to existing shareholders at a ratio of 1:1.
In December 2014, Acesite approved the planned stock offering to raise funds to finance the P400 million renovation program for the Manila Pavilion Hotel.
The shares to be offered under stock rights offering will come from the unissued authorized capital stock of the company of P1.21 billion.
Based on Acesite’s closing price of P1.04 per share on Thursday, the sale of 344.747 million shares will generate as much as P358.5 million in proceeds.
Acesite said the decision to defer this fund raising activity was made upon the recommendation of management in consultation with its financial advisers and underwriters.
Acesite owns and operates the Manila Pavilion Hotel located in Ermita in Manilla, the Philippines. The company is a subsidiary of Waterfront Philippines, Inc.
According to Acesite, the renovation of the hotel will include room upgrades, rework on the building façade, and the purchase of capital assets for its back room physical plant.