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Fil-Estate postpones swapping of shares

Friday, 13 April, 2012 Written by Jenniffer B. Austria
[ manilastandardtoday.com ]

Fil-Estate Corp. said its board has deferred plans to take over a 30-percent equity in leisure estate developer Camp John Hay Development Co. amid the ongoing dispute with the Bases Conversion Development Authority.

Fil-Estate said in a disclosure to the stock exchange the transfer of the shares of Fil-Estate Management Inc. in CJHDevCo would be postponed until the dispute between CJHDevCo and BCDA was resolved.

BCDA has been hounding CJHDevCo for non-payment of lease rentals reaching P2.9 billion. CJHDevco claimed it had been current in rental obligations, having paid P1.4 billion during the 16-year life of the lease contract over the Camp John Hay land.

Fil-Estate Management and other shareholders of CJHDevCo in 2007 signed a deed of assignment on a 30-percent equity interest equivalent to 1.5 million shares in the Baguio developer in favor of Fil-Estate through a share swap.

The agreement calls for Fil-Estate will give up to 450 million of its shares to Fil-Estate Management at P1 each in exchange for the 30-percent stake in CJHDevCo.

The Fil-Estate companies signed the agreement amid CJHDevCo’s discussions with certain property developers and business process outsourcing operators, who planned to invest in the Camp John Hay area in Baguio City, the country’s summer capital.

CJHDevCo obtained a 50-year lease contract to develop the former military base in October 1996, five years after the camp was turned over by the US government to the Philippines.

Fil-Estate Management owns 45 percent of CJHDevCo. College Assurance Plans owns another 25 percent while Northwoods Co. holds 30 percent

Meanwhile, Fil-Estate said its board accepted the infusion of properties valued at P500 million by Mt. Zion Memoria  Inc. in exchange for 500 million common shares of the company at a par value of P1 apiece.

(Published in the Manila Standard Today newspaper on /2012/April/13)
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