Monday, January 19, 2009 [ manilatimes.net ]
AB Holdings Corp. (ABHC) plans to buy the majority stake of Metro Pacific Investments Corp. (MPIC) in Landco Pacific Corp.
In a statement, Alfred Xerez-Burgos 3rd, Landco senior vice president said ABHC plans to buy out the local unit of Hong Kong-listed First Pacific Co. Ltd.’s in the property firm.
“We are currently in talks with MPIC in order to finalize the payment terms,” Xerez-Burgos said.
Under the current set-up, MPIC owns 51 percent of the property firm, while ABHC controls 49 percent.
MPIC recently decided to concentrate on businesses relating to infrastructure, utilities and health care. It offered ABHC first crack at buying out its stake.
Manuel Pangilinan, MPIC chairman earlier said Landco had succeeded in creating a niche market and established a good brand name in the property sector. He said MPIC decided to exit the real estate industry to focus on the other said businesses.
Details about the transaction shall be disclosed to the public as soon as an agreement is finalized by the two parties, ABHC said.
“We are confident of Landco’s viability. Our various prospects, including our joint ventures with MPIC, will continue as planned. We will not be deterred from providing our customers with quality products and services,” Xerez-Burgos said.
“While many are anticipating challenges posed by the economy in 2009, we are quite optimistic that our product portfolio can address the needs of the market. Landco’s financial standing has weathered much greater challenges like the Asian currency crisis, and we are confident that the company will stay on a path for steady growth,” he added.
Landco posted a 60-percent increase in their sales from January to September last year.-- Chino S. Leyco
