IFC to invest US$12.8 million in Discovery World Corporation
Pakistan press club – New York
World Bank’s private investment arm International Finance Corp (IFC) is investing up to 650 million pesos (about US$12.8 million) in Discovery World Corp, a listed company in the Philippines.
DWC owns and operates popular hotels and resorts in the country, including the upscale beachfront resort Discovery Shores Boracay.
Both companies earlier signed a subscription agreement where IFC shall subscribe up to 216.7 million preferred shares in DWC at 3 pesos (about US$0.60) apiece, in order to provide capital for the growing demand for hospitality infrastructures in the country.
IFC’s subscription shall be conditioned on the approval by the stockholders of DWC following the approval by the stakeholders and the Securities and Exchange Commission.
Using IFC investment, Discovery World Corp will set up two new hotels in the Philippines’ key frontier locations including El Nido in Palawan, which is home of the largest marine sanctuary and La Trinidad in Benguet, which is an agriculture-rich mountainous region.
These projects will expand DWC’s portfolio that includes Discovery Shores Boracay, a multi-awarded luxury resort, and Club Paradise Palawan, an exclusive island resort in Coron. The startup also owns Discovery Fleet which operates cruise boats for scuba safari expeditions in some of the world’s best diving sites.
Under the agreement, the preferred shares to be issued to IFC shall be convertible to common shares at any time after the expiry of 48 months from the date of IFC subscription.
DWC noted the issuance of common shares to IFC as a result of its conversion of preferred shares shall, in no case, result in foreign shareholdings exceeding 40 percent of the company’s outstanding capital stock.