Ayala Land spends P5.62B for majority control of Divisoria developer
Property giant Ayala Land Inc. of Bilyonaryo Jaime Augusto Zobel de Ayala is spending P5.62 billion to acquire a majority control of Prime Orion Philippines Inc. (POPI).
Ayala Land and POPI executed a Deed of Subscription and a Supplement to the Deed of Subscription last Wednesday.
Under the agreement, Ayala Land will acquire to 2.5 billion common shares of stock of POPI at P2.25 per share. This is equivalent to 51.06 percent of the total outstanding shares of POPI.
The property giant already paid P1.4 billion or 25 percent of the total acquisition cost while the remaining 75 percent will be paid upon fulfillment of certain terms and conditions.
To implement the transaction, POPI shall file with the Securities and Exchange Commission (SEC) an application for increase of its authorized capital stock to P7.5 billion from P2.4 billion.
With the acquisition by Ayala Land, the stake of Guoco Assets (Philippines) Inc. will be reduced to 9.22 percent from 18.83 percent while that of Genez Investments Corp. was also reduced to 5.46 percent from 11.16 percent.
Ayala Land president Bernard Vincent Dy was elected chairman of POPI replacing Felipe Yap who became vice chairman while Jose Emmanuel Jalandoni was elected president replacing Yuen Po Seng.
Ruby Chiong was appointed treasurer, Rhodora Estrella Revilla as chief finance officer, and June Vee Moneclaro-Navarro as corporate secretary.
POPI has interests in real estate and property development, manufacturing and retailing/distribution, non-life insurance and other allied services, organized under several intermediate holding companies including Orion Land Inc., Orion I Holdings Philippines Inc., and OE Holdings Inc.
OLI wholly-owns Tutuban Properties Inc. that holds the lease and development rights over a 22-hectare market district in downtown Divisoria including the Tutuban Center.
Tutuban Properties renewed its contract of lease with the Philippine National Railways (PNR) for another 25 years until September 2039.
The Department of Transportation and Communications (DOTC) has picked Tutuban Center as the transfer station for the proposed P171 billion North ? South rail project and the west extension of the Light Rail Transit line 2 (LRT2).
Ayala Corp. has partnered with infrastructure giant Metro Pacific Investments Corp. (MPIC) of Bilyonaryo Manuel V. Pangilinan for various rail projects including the P65 billion LRT1 Cavite extension project.