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.