Alphaland sells stake in Shangri-La hotel for P1.7B

Rappler.com

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A company source says the Kuok Group made a very attractive offer for its stake

IN BATTLE. Ongpin-led Alphaland is in a legal dispute with UK-based Ashmore group over an alleged simulated sale of shares of the company

MANILA, Philippines – High-end property developer Alphaland Corporation on Wednesday, April 30 announced that it sold its 20% stake in soon-to-rise Shangri-La at the Fort in Bonifacio Global City.

In a disclosure to the Philippine Stock Exchange, Alphaland said it sold its stake in the 5-star hotel to subsidiaries of Shang Properties Inc. for P1.7 billion. Shang Properties is the local property unit of Malaysia’s Kuok Group.

The sale followed reports that the company was experiencing financial difficulty because of a dispute with its former majority shareholder Ashmore Group.  (READ: Ongpin vs Ashmore: The real deal)

An Alphaland source however said that the company decided to sell merely because of the “very attractive” offer made by Shang Properties. “We sold the 20% stake at premium. We nearly doubled our investment.”

Alphaland, led by businessman Roberto Ongpin, got locked in a dispute with London-based equity fund Ashmore following the latter’s refusal to fund the property developer’s projects.

Alphaland launched a capital call in January that resulted in the dilution of Ashmore’s stake in the company.

Trading of Alphaland shares has been suspended. The Philippine Stock Exchange initiated delisting procedures against the company for its repeated failure to submit full, accurate and timely disclosures. – Rappler.com

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