Ongpin-led Alphaland to sell 4 prime properties
MANILA, Philippines - The group of billionaire and former trade minister Roberto V. Ongpin has agreed to sell some of its prime assets to settle its dispute with UK-based pension fund Ashmore Group, its joint venture partner in listed property firm Alphaland Corporation.
In a disclosure to the stock exchange Friday, June 6, Alpahaland said it signed a definitive agreement with its shareholders, Alphaland Holdings (Singapore) Pte. Ltd. (AH) and Masrickstar Corp. (MC), by transferring 4 of Alphaland’s major assets to newly incorporated company owned by AH and MC.
Ongpin's legal disputes with Ashmore have been one of the most public and international controversies for the former crony of the late dictator Ferdinand Marcos. (READ: Ongpin vs Ashmore: The real deal)
Ongpin and Ashmore have been locked in a boardroom battle since early 2013, after Ashmore declared that it was no longer willing to fund Alphaland projects.
In March 2014, the Philippine Stock Exchange initiated delisting procedures against Alphaland for repeated violations of disclosure rules. The violations occurred in the course of its disclosure of the alleged simulated sale of Alphaland shares between Ashmore and Credit Suisse (Singapore) Ltd.; cases involving the company; its state of financial distress; and its representation of its conduct of a stock rights offering, which it later admitted as a "minority offering."
The assets to be transferred to AH and MC are:
- 100% of Alpahaland Makati Tower Inc., which owns Alphaland Tower along Ayala Avenue, Makati City
- 100% each of Alphaland Marina Club Inc. and Alphaland Marina Corp., which is currently developing Alpahaland Marina & Country Club project in the Manila Bay reclamation area in Parañaque City
- 50% ownership of the Alphaland group in Alphaland Bay City Corp., the joint venture formed by Alphaland group and Wenceslao group to develop the 32-hectare Alphaland Bay City at the Aseana Business Park in Parañaque City
- 60% interest owned by the company in the Boracay Gateway project, the incorporated joint venture between the company and the Akean Resorts Corp. to develop the latter’s 500 hectares of land in Caticlan (Makay) and Nabas, Aklan
In return, AH and MC will transfer back all of the shareholdings in Alphaland and will also pay the company P2.5 billion in cash in two tranches.
“As a result of these transactions, AH and MC will no longer be shareholders of the company, and the company will no longer have any stake in the transferred interests,” Alphaland said.
Alphaland will remain majority-owned and controlled by the Ongpin-led group. The Alphaland Southgate Tower and Mall; Alphaland Makati Place, including the City Club; Alphaland Balesin Islands Club; and Alphaland Baguio Mountain Lodge Homes are among the assets that will remain with the company.
As part of the settlement, all the legal cases filed by both parties against each other, both here and abroad, will also be dropped, informed sources said. – Rappler.com