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Ayala Land officially takes over Tutuban Center owner

Posted on February 26, 2016 07:36:00 PM [ ]

PROPERTY giant Ayala Land, Inc. formally took over the firm that owns Tutuban Center in Divisoria -- the site of the planned transfer station for the North South Railway Project -- paying an initial P1.41 billion in cash.

“Today, 24 February 2016, Ayala Land, Inc. and Prime Orion Philippines, Inc. (POPI) executed a Deed of Subscription and a Supplement to the Deed of Subscription whereby ALI subscribed to 2,500,000,000 common shares of stock of POPI, which will represent 51.06% of the total outstanding shares of POPI,” Prime Orion told the Philippine Stock Exchange on Friday.

The shares were priced at P2.25 each, for a total of P5.63 billion. ALI paid 25% or P1.41 billion on Wednesday, and the balance will be settled “upon fulfillment of certain terms and conditions.”

To accommodate ALI’s subscription, Prime Orion said it will file an application with the Securities and Exchange Commission to increase its authorized capital stock to P7.5 billion, divided into 7.5 million common shares with par value of P1 apiece, from P2.4 billion.

As part of management change, Prime Orion’s top officials tendered their resignations effective Wednesday: Felipe U. Yap as chairman; David C. Go as vice-chairman; Yuen Po Seng as president and chief executive officer; Ronald P. Sugapong as director, treasurer, and chief finance officer; and Daisy L. Parker as director, corporate secretary, chief legal counsel, and compliance officer.

The company then appointed ALI President Bernard Vincent O. Dy as chairman; Mr. Yap, vice-chairman; Jose Emmanuel H. Jalandoni, president; Ruby P. Chiong, treasurer; Rhodora Estrella B. Revilla, chief finance officer and compliance officer; June Vee D. Monteclaro-Navarro, corporate secretary; and Nimfa Ambrosia L. Perez-Paras, assistant corporate secretary.

ALI bought portions of shares held by principal stakeholders Guoco Assets (Phil.), Inc. and Genez Investments Corp. With the transaction, Prime Orion’s public float will decrease to around 32.16%, and its foreign ownership level will go down to 1.056%.

Prime Orion owns Tutuban Center in the Divisoria Tutuban Complex, which sits on a 20-hectare property that has a 60,000-square-meter gross leasable area and generates P400 million in annual revenue. The planned transfer station for the P287-billion North South Railway Project will connect to the Light Rail Transit Line 2 West Station.

The North South Railway Project will have a 56-kilometer commuter rail from Tutuban to Calamba, Laguna, and a 478-km long-haul rail from Tutuban to Legazpi, Albay. It is expected to boost the area’s daily foot traffic of 100,000 by 400,000.

Prime Orion had announced plans to double its leasable area and convert it into a mixed-use development, using ALI’s investment.

Shares in Prime Orion shed 16 centavos or 7.37% to end the week’s trading at P2.01 apiece; while those of ALI lost 45 centavos or 1.38% to P32.05. -- Daphne J. Magturo

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