[ Malaya.com.ph ] January 7, 2011
Fil-Estate Land Corp. and Alliance Global Inc. have moved the signing of the agreement where the latter, led by Andrew Tan, will take a majority control of the Sobrepena-led realty firm to today.
The two companies did not provide an explanation why the signing did not push through on Wednesday as scheduled.
Alliance is investing P5 billion in Fil-Estate Land to allow it to expand its tourism business portfolio through the latter’s landbank.
In particular, Alliance Global is eyeing the development of 1,000 hectares of property of Fil-Estate Land in Tagaytay, in Nasugbu in Batangas and in Boracay.
The 59.88 percent stake of Alliance Global will lower the stake of the Sobrepena group in Fil-Estate to 21.57 percent from 53.77 percent. The public float will be reduced to 18.55 percent from 46.23 percent.
The entry of Alliance Global via subscription hinges on the approval by the Securities and Exchange Commission of the increase of Fil-Estate Land’s capitalization to P10 billion from P5 billion.
Fil-Estate Land said the proceeds of the subscription will be used to "develop and complete existing projects, create new projects, redeem certain convertible bonds and prepay certain loans."