Posted on 10:21 PM, January 12, 2011 [ BusinessWorld Online ]
THE ALLIANCE Global Group, Inc. of property tycoon Andrew L. Tan finally completed its P5-billion acquisition of a majority stake in Sobrepeña-led Fil-Estate Land, Inc., after delays in legal paperwork.
“Closing of the subscription agreement among Fil-Estate Land, Fil-Estate Management, Inc. and Alliance Global Group occurred [yesterday],” both parties said in separate disclosures.
Alliance Global said it paid P1.25 billion in cash, or 25% of the total subscription price for Fil-Estate Land shares.
“With the infusion of new capital by Alliance Global, Fil-Estate is now in a strong position to pursue various tourism-oriented projects immediately,” Fil-Estate Land said. “It has just started with the master planning of the Newcoast Station, a new tourism-oriented community project in Boracay,” it added.
Fil-Estate Land said it owns and controls more than 10% of the total land area in Boracay. The island covers 1,006 hectares.
“The development of Newcoast station, along with the new Caticlan airport ... aims to double the number of tourists to the island in the next three to four years,” Fil-Estate Land said.
Mr. Tan assumed the chairmanship of Fil-Estate Land, which will be renamed Global-Estate Resorts, Inc.
Since last week, the two companies have postponed the completion of the deal twice, sending share prices lower.
Alliance Global announced the purchase of 60% of Fil-Estate Land late last month. The acquisition is expected to fast-track the expansion of Alliance Global’s tourism projects outside Metro Manila as it aims to become the largest tourism player in the country.
Alliance Global wants to develop more than 1,000 hectares of tourism-oriented communities in the country’s prime tourist spots such as Tagaytay, Nasugbu, and Boracay.
The listed holding firm -- which is into tourism (Travellers International Hotel Group, Inc.), property (Megaworld), liquor (Emperador Distillers, Inc.), and fastfood (Golden Arches Development Corp., the master franchise holder of McDonald’s in the Philippines) -- reported a 63% profit hike to P5.39 billion in the nine months that ended in September last year from the previous year’s P3.31 billion.
Shares in Alliance Global closed P0.22 higher at P11.20 each yesterday while shares in Fil-Estate Land dropped by P0.05 to P1.54. -- N. J. C. Morales