By Richmond S. Mercurio (The
Philippine Star) | Updated December 23, 2014 - 12:00am
MANILA, Philippines - Metro Pacific
Investments Corp. (MPIC) is infusing P85 million in upscale property
development company Landco Pacific Corp. to restructure the latter and make it
more attractive for selling.
In a disclosure to the stock exchange,
the infrastructure conglomerate said it has entered into an agreement with
Landco and its controlling shareholder to restructure and clean up the balance
sheet of the company in preparation for an eventual sale to third parties.
“The cash infusion will be to the
extent of P85 million and conversion of receivables into equity to the extent
of P79.8 million,” MPIC said.
Through the agreement, MPIC said it
expects to convert its preferred shares in Landco to common shares in the near
future.
Likewise, the conglomerate led by
businessman Manuel V. Pangilinan intends to have additional subscription to
non-voting preferred shares by way of cash infusion and conversion of MPIC’s
receivables from LPC into equity, and spin off of non-performing assets of LPC
to a separate company.
“The foregoing steps will be
implemented in different phases in the near future,” MPIC said.
In 2010, MPIC sold 15 percent of its
interest in Landco to AB Holdings Corp., reducing its equity in Landco to just
19 percent.
Prior to that, MPIC already sold 17
percent of its stake in the property firm to AB Holdings, making the latter the
majority owner with more than 80-percent interest in Landco.
Landco is a developer of leisure
communities, resort-inspired condominiums, and luxury home communities. Its
flagship development is the Peninsula de Punta Fuego in Nasugbu, Batangas.
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