Vol. XXI, No. 175 [ Business World Online ]
Tuesday, April 08, 2008 | MANILA, PHILIPPINES
LISTED GMA NETWORK, Inc. will let go of a 5.3-hectare property in Tagaytay City, Cavite for which it finds no use, Chairman and President Felipe L. Gozon said last week.
"That is a very good property across the Mushroom Burger in Tagaytay City. It is not part of our core business. We can keep it because the price of land is going up but if there is a buyer, [we can consider selling it]," he said in an interview. Mr. Gozon said he did not know the value of the property.
In April 2007, GMA Network’s board of directors decided to sell its 49% stake in Mont-Aire Realty and Development Corp., which owns the Tagaytay lot. The remaining 51% is owned by the Duavits, Gozons and Jimenezes, who are also GMA Network’s principal shareholders.
In an earlier prospectus, GMA Network said it had made P84.7 million in advances to Mont-Aire for working capital as of Mar. 31, 2007.
In 2006, Mont-Aire became an associate of GMA Network. The advances made by GMA to Mont-Aire in previous years were intended for future capital subscription. In 2004, GMA Network made P121.4 million in advances to Mont-Aire. Of the total, the network converted P38.3 million into P38.3 million worth of common Mont-Aire shares.
The Securities and Exchange Commission approved the conversion of the advances into equity on Feb. 17, 2006.
On Friday, GMA Network shares closed 2.67% lower at P7.30 ahead of the long weekend. — Ruby Anne M. Rubio
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