MANILA, Philippines—Metro Pacific Investments Corp. (MPIC), the Philippine holding firm of Hong Kong-based conglomerate First Pacific Co. Ltd., said Thursday it had offered to sell its 51-percent shareholding in Landco Pacific Corp. to its partners in the property firm.
The partners in Landco—AB Holdings Corp., led by Landco president Alfred Xerez-Burgos Jr., and Xerez-Burgos in his personal capacity—together own 49 percent of Landco.
In a disclosure to the stock exchange, MPIC president Jose Maria K. Lim said the company and its joint venture partners in Landco—AB Holdings Corp. led by Landco president Alfred Xerez-Burgos Jr. and Xerez-Burgos in his personal capacity—agreed to subject Landco to third-party valuation.
MPIC also said it had agreed to provide Landco up to P500 million in short-term funding for working capital and for paying maturing debts.
Lim said the valuation of Landco was expected to be completed on Oct. 15, and AB Holdings and Xerez-Burgos subsequently could serve notice that they would acquire MPIC’s stake in Landco not later than Oct. 31, 2008.
Philippine Daily Inquirer sources said the reckoning date could be extended to Nov. 30 if the Xerez-Burgos group could settle the P500-million short-term funding provided by MPIC and find an investor to buyout MPIC.
If the Xerez-Burgos group would decide to acquire MPIC’s stake within the given timeframe, it should do the buyout not later than Nov. 30. The reckoning date could be extended to Dec. 29 if the Xerez-Burgos group would settle the short-term funding provided by MPIC to Landco and find an investor.
If the Xerez-Burgos group will not serve notice to acquire MPIC’s stake or implement the plan during the period indicated, MPIC will have the right to buy the entire stake of the Xerez-Burgos group in Landco. The Xerez-Burgos group, however, may keep 10 percent of the current outstanding shares of Landco.
MPIC chairman Manuel Pangilinan earlier said the company was doing a strategic review of its investment in Landco in view of the stiff competition in the property development industry.
“We are up against significant large property developers, although these past many years Landco has developed its niche market, which is leisure development,” he said.
Landco reported a recurring net income of P17.9 million in the first half of the year, compared with P110.3 million in the same period in 2007. With editing by INQUIRER.net
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