Companies

FIL-ESTATE Land Inc. (Feli) will see its public float shrink by more than half after it becomes a
subsidiary of Alliance Global Group Inc. (AGI).

In a follow up disclosure to the Philippine Stock Exchange (PSE) on Wednesday, Feli said its
public float will be reduced to 18.55 percent from the current 46.23 percent, following the buy-in.

A public float is the portion of a company’s outstanding shares held by the public and not by its
directors, officers and controlling interest investors. 

For now, AGI is waiting for regulatory approval before buying almost 60 percent of Feli.

AGI, which has interests in real estate development, casinos, liquor manufacturing and food
service, announced the acquisition of Feli last month in line with a plan to beef up its tourism
portfolio outside Metro Manila.

AGI said it will buy 5 billion new common Feli shares for P5 billion, pricing the shares at P1
each.

Feli shares gained 7.75 percent to P1.39 on Wednesday’s close. The stock is up over 51
percent since the deal was announced on December 22.

AGI said the subscription will come out of the P5-billion increase in authorized capital stock of
Feli approved in July 2007. AGI will pay Feli P1.25 billion in cash three days upon approval of
the capital increase by the Securities and Exchange Commission.

The remaining P3.75 billion will be released within five days after the PSE allows the listing of
the subscribed shares.

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Companies

Through its partnership with Feli, AGI is eyeing over 1,000 hectares of tourism-oriented
communities in prime spots in Tagaytay, Nasugbu and Boracay. AGI said it may pour P7 billion
into these projects, with the spending program to be partly funded by the sale of treasury
shares.

Feli, which was one of the country’s most aggressive property developers prior to the 1997
Asian financial crisis, said the fresh funds will allow it to complete existing and new projects,
redeem convertible bonds and repay loans.

AGI wants to beef up its tourism portfolio following the strong reception toward Resorts World
Manila, a casino and hotel complex owned by Travellers International Hotel Group Inc., a joint
venture between AGI and Genting Hong Kong Ltd.

AGI shares dropped 1.41 percent to P12 on yesterday’s trading.

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