PH Dealbook: Aboitiz to invest in CRH, SMC disposes property, H2O sells subsidiary

From the website of Aboitiz

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.

Also read: PH partners Aboitiz-JV Angeles seal $223m water supply project

SMC sells property for $27m

Real estate firm Solid Manila Corp (SMC), a wholly owned subsidiary of listed holding company Solid Group Inc, has sold property assets of up to $27 million (P1.2 billion).

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

Wanting to recover its investments, Philippine H2O Ventures Corp (H2O) has decided to sell its wholly owned subsidiary Tabuk Water Corp, which has been non-operational for almost six years.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.