Martin Lorenzo group to venture into real estate
MANILA, Philippines – CAT Resources and Asset Holdings Inc., the company owned by businessmen Martin Lorenzo and Fernando Cojuangco that bought into Central Azucarera de Tarlac Inc. (CAT), plans to venture into industrial and residential development, while it pursues expansion of the sugar milling and processing business.
In a disclosure to the Philippine Stock Exchange on Wednesday, August 20, CAT Resources said it plans to develop 330 hectares of industrial land owned by CAT. It also plans to acquire additional industrial and residential land in and around the property as additional business.
Lorenzo recenlty sold his restaurant chain Pancake House to Max’s Group of Companies. Together with Cojuangco, son of Don Pedro, Lorenzo acquired majority of CAT. Cojuangco is the vice president and chief operating officer of CAT.
Incorporated on June 19, 1927, CAT operates a sugar mill and refinery, distillery and carbon dioxide plants in Barrio San Miguel, Tarlac City. The sugar cane milled is sourced within the Tarlac district and nearby towns of Pampanga.
CAT’s main products are raw and refined sugar, with the mill and refinery process also producing molasses as a by-product. The combined captive molasses are further processed in the distillery to produce alcohol.
Hong Kong’ First Pacific Company Ltd was earlier reported to be interested in acquiring CAT.
CAT Resources set terms for tender offer
Meanwhile, CAT Resources also set terms for the tender offer for the remaining 8.481 million shares, representing 30.03% of CAT’s issued and outstanding shares held by minority shareholders.
The tender offer is being conducted after major shareholders of CAT, namely the Don Pedro Conjuangco family, Jose Cojuangco Jr. family, Reyes family, Teopaco family, Aquino family and Lopa family, sold all their shares totaling 19.772 million to CAT Resources. The shares represent a 69.77% of CAT and were sold at P91 ($2.08) each.
Assuming all minority shareholders tender their shares, CAT Resources will spend at least P771.8 million ($17.62 million) to acquire these shares.
CAT Resources, however, said it plans to keep CAT listed on the stock exchange.
Tender offer period will be run from August 20 to September 19. The shares will be crossed on the stock exchange on September 30. – Rappler.com