Vol. XXII, No. 37 [ BusinessWorld Online ]
Tuesday, September 16, 2008 | MANILA, PHILIPPINES
PANGILINAN-LED Metro Pacific Investments Corp. (MPIC) and AB Holdings Corp. said they are bullish about the growth of Landco Pacific Corp. despite a possible change in ownership.
"Landco remains on track for growth," the companies said in a joint statement yesterday. MPIC and AB Holdings have expressed interest in buying out each other’s interest in the property company. MPIC holds the majority stake, while AB Holdings owns the remaining 49%.
"If AB Holdings is able to find an investor, then it would generate sufficient funds to acquire MPIC’s share and propel Landco to fulfill its business plan," MPIC said. "If, on the other hand, MPIC buys out AB Holdings’ share, it would justify MPIC’s move to increase its equity in Landco since it will now be of significant size to be more competitive in the industry," it added.
"At this point, MPIC is just rationalizing its investment in Landco given the size of its investment portfolio, including infrastructure, utilities and health care," MPIC President Jose Ma. Lim said.
MPIC has lent its property unit half a billion pesos to help it pay for debts and fund projects. The company said the P500-million loan to Landco would allow it to fast-track projects and meet its 91% sales growth target this year. "MPIC would like to assure Landco’s other stakeholders that if [we] buy out AB Holdings they will still retain a 10% stake in Landco." — Kristine Jane R. Liu