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.