Vol. XXI, No. 241 [ BusinessWorld Online ]
Wednesday, July 9, 2008 | MANILA, PHILIPPINES
THE BOARD of holding firm Fil-Estate Corp. has approved its acquisition of Fil-Estate Management Inc.’s 30% stake in Camp John Hay Development Corp. (CJHDevCo).
In an interview, Fil-Estate Corp. Corporate Secretary Gilbert Raymund T. Reyes said its parent Fil-Estate Management had transferred its interest in CJHDevCo to its unit to improve the latter’s negative equity position.
CJHDevCo is a consortium formed by Fil-Estate Management, College Assurance Plan Philippines, Inc. and Penta Capital Holdings.
"Fil-Estate Management did this so that Fil-Estate Corp. would have active investments to pay the shareholders who made substantial advances to the company’s previous Metro Rail Transit Line 3 (MRT-3) project," Mr. Reyes said.
He said the Philippine Stock Exchange has given it until this year to solve the problem, otherwise it would get delisted.
Fil-Estate Corp. is the holding firm that built MRT-3, but Mr. Reyes noted that since the project ended 10 years ago, the company has not had a consistent source of revenue.
"Acquiring interest in CJHDevCo would put the company back into a good position," Mr. Reyes said. — K.J.R. Liu
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