Del Rosario-led PHINMA Corporation has scaled down the planned ₱1.6 billion investment allocated to its property and construction materials units to ₱1.25 billion.
In a disclosure to the Philippine Stock Exchange, the firm said its board of directors has approved the reversal of appropriation of retained earnings amounting to ₱1.60 billion for investment in PHINMA Property Holdings Corporation and Construction Materials Group.
Instead, PHINMA is investing ₱250 million in PHINMA Community Housing Corporation for its initial capital expenditure requirements, purchase of land and working capital requirements.
Also approved is the appropriation of retained earnings of ₱500 million for investment in Construction Materials Group and ₱500 million in PHINMA Community Housing Corporation until December 31, 2026.
PHINMA is undertaking the simultaneous expansion of its core businesses after successfully raising P1 billion from its P1 billion stock rights offering late last year on top of a ₱4.5 billion cash infusion by global investment firm KKR into its education unit.
In January, the firm completed the acquisition of 100 percent of PHINMA Insurance Brokers, Inc. (PIBI) from PHINMA, Inc. for ₱150.53 million by buying all the 2.3 million PIBI shares of PHINMA INC.
PIBI is the insurance brokerage arm of PHINMA, involved in developing, packaging and servicing life, non-life and HMO insurance programs while dealing with reputable local and global insurance companies to answer its clients’ various requirements.
Last December, subsidiary PHINMA Education Holdings, Inc. acquired St. Jude College (SJC) Dasmariñas Cavite for ₱432 million.
This marks the company’s entry into the Cavite market and adds 3,000 students to its network--the largest in Southeast Asia’s private higher education sector in terms of enrollment.
PHINMA hopes replicate with its other business units, whom management has challenged to more directly address the needs of their target market, beginning with housing.
Thus, a significant amount of the SRO proceeds, ₱200 million, will finance projects of PHINMA Properties in emerging cities outside Metro Manila, such as Bacolod, Cebu and Davao.
PHINMA is investing ₱250 million from the SRO proceeds for the 150-room hotel which may cost up to ₱750 million to build.
To support the government's infrastructure push, he said the group will use P170 million of the SRO proceeds to fund nearly 60 projects that PHINMA solar secured from the Green Energy Auction program, as well as ₱114 million to construct a modern cement manufacturing facility in Davao Del Norte that can produce two million metric tons annually.
It is also allocating ₱170 million for the 58 projects secured by PHINMA Solar Energy Corp. in the government's Green Energy Auction Program and ₱114 million for the construction of Philcement Corporation's modern cement manufacturing facility in Davao del Norte that can produce two million metric tons annually.
About ₱210 million of the proceeds will head to the Group's new venture, Union Insulated Panel Corporation’s new state of the art facility in Pampanga with a yearly production capacity of one million square meters.
Meanwhile, ₱239.56 million will be used for investments in areas of socialized housing, food security, healthcare, and the green industry, along with general corporate purposes.