In three separate business developments in the Philippines, a public holding firm announced plans of investing with an Irish building materials company, while two other local firms have disposed a property and a subsidiary.
Aboitiz to invest with Ireland’s CRH for company acquisitions
Aboitiz Equity Ventures Inc, a local public holding company, and Ireland-based global building materials company CRH plc are in exclusive negotiations, to invest in the acquisition of six cement manufacturing plants, together.
The decision by Aboitiz is in line with its recent announcement of moving into infrastructure, the fifth leg of the company’s core businesses after power, banking, food, and land.
Aboitiz signed an exclusivity agreement with a non-binding memorandum of understanding (MoU) with CRH for potential investment in the acquisition of local cement operations by Lafarge Republic Inc, a Lafarge Republic Group associated company.
The stakes involved are – majority of Lafarge’s shares in Luzon Continental Land Corp and Lafarge Cement Services Philippines Inc, which together constitute the majority of Lafarge’s Philippine cement operations. This follows CRH’s announcement, earlier this year, of its commitment to acquire the Philippine cement operations of Lafarge Holdings (Philippines) Inc.
The six cement manufacturing plants are in Bulacan, Norzagaray, Teresa, and Batangas in Luzon, and one each in Davao City in Mindanao and Cebu City in the Visayas.
“Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country’s need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector,” said Aboitiz president and chief executive officer Erramon Aboitiz.
Conclusion of any transaction would be subject to the successful completion of the merger between Lafarge SA and Holcim Ltd, and also approval by the boards of both CRH and Aboitiz.
Trading price of Aboitiz closed at P57.65 on Friday as it went up by 0.70 per cent to Thursday’s P57.25.
SMC sells property for $27m
The assets disposed were parcels of land with a total area of 31,423.50 sq.m and improvements located in Balintawak in Quezon City.
Solid Group said the value of the transaction of the property is not material as it represents less than 10 per cent of its total consolidated assets.
“The consideration for the assets was based on market value of the property sold. The amount was mutually agreed upon by the parties after a due diligence investigation of said assets as conducted by the buyer. Being a holding company, Solid Group Inc continuously strives to realize the best value for its assets,” Solid Group said in its statement.
H2O Ventures disposes non-operating subsidiary
Tabuk Water is being sold to the realty firm Jolliville Holdings Corp (JOH) for up to $225,225 (P9.9 million). The total shares involved are 9,999,995 priced at P1.00 apiece.
Tabuk Water was initially set up in 2006 to operate and maintain the Tabuk City water system in the Kalinga province. It became H2O’s wholly-owned subsidiary on December 16, 2009 after the latter acquired all of the water firm’s outstanding shares from Calapan Waterworks Corp and Ormina Realty & Development Corp, a subsidiary of JOH.
To date, Tabuk Water has remained non-operational as the Tabuk City water system is directly operated by Calapan Waterworks, another H2O subsidiary.
H20’s last trading price went down by 8.41 per cent or P0.370 to close at P4.03 on Friday.