ANDREW Tan-led property developer Megaworld Corp. is seeking Securities and Exchange Commission (SEC) approval for proposed amendments to its articles of incorporation which include changes in its secondary purposes and a planned authorized capital stock hike.
In a disclosure to the stock exchange, Megaworld said the proposed amendments, approved by its board of directors last March 25 and subsequently approved by its stockholders last May, were to be filed July 11.
The changes will allow Megaworld to enter into guarantee and surety arrangements of its subsidiaries or affiliates as well as allow it to increase its authorized capital stock to P45.7 billion from P45 billion.
The addendum to its secondary purpose states: “To undertake, guarantee and/or act as a guarantor or surety of the debts, liabilities, obligations or loans of a subsidiary or affiliate corporation, and mortgage, pledge or encumber the properties and assets of the corporation to secure the obligations of such subsidiary or affiliate.”
This aims to support the business operations and growth of Megaworld’s subsidiaries and affiliates, it said.
The increase in capital stock, meanwhile, is meant to “support growth and future business expansions in line with the corporation’s strategies and directions.”
Both amendments, it said, are not expected to have an adverse effect on the operations of the corporation or affect its capital structure.
Megaworld shares dropped by a centavo, or 0.54 percent, to P1.84 apiece on Friday.
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