03/02/2009 [ tribune.net.ph ]
AB Holdings Corp. and Metro Pacific Investments Corp. have reached an agreement regarding the buyout of MPIC’s shares in Landco Pacific Corp., the real estate subsidiary of MPIC, in which ABHC would have 70 percent controlling stake.
Landco’s leisure development projects include the Peninsula de Punta Fuego, Leisure Farms, Playa Calatagan and Hacienda Escudero.
Under the current set-up, MPIC owns 51 percent of the property firm while ABHC owns 49 percent.
MPIC has recently decided to focus on businesses related to infrastructure, utilities and healthcare and therefore will be divesting a significant portion of their share in Landco. However, because MPIC believes in the potential of Landco, they have opted to retain a minority stake at 30 percent.
ABHC then will buy out MPIC’s 21 percent share, bringing ABHC’s total stake to 70 percent as majority owner.
MPIC chairman Manuel Pangilinan earlier noted that Landco had succeeded in creating a niche market and established a good brand name in the property sector.
According to Alfred Xerez-Burgos III Landco senior vice president and director of ABHC, payment for the MPIC shares is planned to be made in the form of assets to be paid over a period of time to be agreed upon between the two parties.
The P500-million loan extended to the real estate firm last year to support working capital expenses will also be settled in the same manner.
Details of the agreement will be disclosed as soon as the parties finalize negotiations.
ABHC, owned by the Xerez-Burgos family, is the holdings company of Landco Pacific Corp.
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