Friday, September 05 2008 [ manilatimes.net ]
A UNIT of San Miguel Corp. has entered into a joint-venture agreement with state-run Government Service Insurance System (GSIS) to organize a corporation that will develop and manage a service apartment in Makati City.
In a disclosure to the Philippine Stock Exchange, San Miguel Properties Inc. (SMPI) said the joint venture corporation shall take ownership of a 1,766-square meter property on Legaspi Street.
SMPI said both parties would have an equal equity stake in the new corporation, which has yet to be incorporated.
The joint venture firm will have an authorized capital stock of P600 million, divided into 600 million common shares valued at P1 per share.
SMPI said GSIS executed the Deed of Assignment in favor of the joint venture firm, with the pension fund conveying to the new corporation the property’s enterprise value of P300 million, as payment for 300 million shares of stock subscribed by GSIS on a tax-free exchange basis.
SMPI, however, has yet to receive the issuance from the Bureau of Internal Revenue for confirming the tax-free status of the exchange. In this regard, the company will pay for its own subscription of 300 million shares of stock in the joint venture company.
In addition, SMPI said that its foregoing subscription in the new firm would be considered as an additional investment for the company, which will be internally generated and is not expected to have any effect on the consolidated net tangible assets and earnings per share of its current financial year. -- Katrina Mennen A. Valdez
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