Italpinas Development Corp. (IDC) said it has converted advances in IDC Homes Inc. into equity to keep the latter a majority-owned unit.
IDC Homes increased its capital stock to P200 million from P1 million, necessitating the increase in shares of stocks subscription of IDC.
“IDC subscribed to 25 percent of the increase, and paid up 25 percent of such subscription, or P49.75 million, payable as follows: P10.28 million via conversion of debt into equity, and P2.16 million to be paid in actual cash,” the company said.
“The subscription will ensure that the subsidiary remains majority-owned and controlled by IDC. At the same time, since 20 percent of the amount to be paid up will be conversion of advances already made to the subsidiary, there is minimal current cash infusion,” it added.
IDC had full ownership of IDC Homes prior to the increase in capital stocks.
“The increase in capitalization will strengthen IDC Homes, and allow IDC to assign development projects to the said subsidiary, and concentrate on exploring other locations, negotiating additional joint ventures, and tapping into diverse funding sources,” IDC said.
IDC Homes is IDC’s vehicle in developing the P1.2- billion Verona Green Apartments in Cagayan de Oro.
