By Iris C. Gonzales (The
Philippine Star) | Updated November 21, 2015 - 12:00am
MANILA, Philippines - Ayala
Land Inc. (ALI) and Prime Orion Philippines Inc. (POPI), the operator of
Tutuban Center in Manila, need more time before they can finally seal the
agreement for ALI’s acquisition of a majority stake in POPI.
The two companies announced
in August ALI is acquiring a stake in POPI through the subscription of 2.5
billion common shares of POPI, equivalent to a 51.36 percent interest in the
Tutuban operator.
“[A]yala Land entered into
an agreement with POPI to subscribe 2.5 billion common shares of stock or 51.36
percent interest in POPI for a total consideration of P5.6 billion, subject to
certain terms and conditions,” ALI earlier said in August.
However, the two parties
agreed yesterday to extend the due diligence period by another 30 days or until
Dec. 17 instead of the original Nov. 17.
“Please be advised that in
connection with the agreement to subscribe executed by and between ALI and POPI
on Aug. 13, 2015, the parties today mutually agreed to extend the due diligence
period for another 30 days or until Dec. 17, 2015,” the two companies said in
separate disclosures to the Philippine Stock Exchange yesterday.
POPI is the owner of
Tutuban Center in Manila through its subsidiary Tutuban Properties Inc.
Tutuban Center is a popular
retail complex in the shopping district of Divisoria in Tondo, Manila, with gross
leasable area of about 60,000 square meters, offering various concepts from
wholesale and bargain stalls, to regular retail and food outlets.
It sits on a 20-hectare
property and will be the location of the North-South Railway Project Transfer
Station, which will interconnect with the LRT-2 West Station.
POPI said it would benefit
from ALI’s expertise.
“With the entry of ALI,
POPI will be able to benefit from the expertise and resources of ALI and
optimize the development of its property assets, especially Tutuban Center,”
POPI said.
In relation to the
agreement, POPI’s board approved the amendment of its Articles of
Incorporation, specifically to increase the number of its directors to nine
from seven and to increase its authorized capital stock to P7.5 billion from
P2.4 billion.
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