Developer expects 40% profit hike from backdoor listing

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Category: Companies

Published on Thursday, 09 May 2013 19:11

Written by VG Cabuag / Reporter

PROPERTY developer 8990 Holdings Inc. expects an additional 30-percent to 40-percent profit increase through additional funds from its planned backdoor listing, the company said.

In a statement, the company known for mass housing brands Deca Homes and Urban Homes said it will also increase its land bank.

Publicly listed IP Converge Data Center was acquired by 8990 Group in July last year for P3.96 billion. The said company will be the vehicle for the said backdoor listing of 8990.

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A backdoor listing is deemed to occur when a listed company acquires or merges or combines with an unlisted company, or when a listed company is acquired by, merged or combined with an unlisted company.

“Given this agreement, 8990 Holdings will become the majority shareholder of each company under the 8990 Group. And, in turn, the 8990 majority shareholders will become majority shareholders of 8990 Holdings Inc.,” Jesus Atencio, president and chief executive officer of the 8990 Group said.

Last year 8990 recorded a net profit of P1.71 billion, and Atencio said its income will rise this year despite the recent changes. For the first quarter of the year, its income may have reached P700 million. “Such results clearly indicate an upward trend that will bring us to a higher level of record profits this year, wherein our commitment to provide affordable mass housing under our Deca Homes brand shall continue to be the principal driving force of this growth,” Atencio said.

Deca Home developed some 51 subdivisions, with more than 41,000 housing units turned over. It has 10 ongoing residential projects in Angeles, Cavite, Iloilo, Cebu and Davao, and two wakeboard parks—Deca Wake Park Davao and Deca Wake Park Clark.