Greenergy invests in real estate, IT firms
MANILA, Philippines–Listed energy firm Greenergy is entering the real estate and IT businesses as part of efforts to diversify its investment portfolio.
In a disclosure to the Philippine Stock Exchange, Greenergy said it subscribed to 20 percent of the outstanding capital stock of agritourism developer Sunchamp Real Estate Development Corp. for P55 million. Greenergy is also set to acquire 25 percent equity interest in IT Group Inc., which offers technology and outsourcing services, for a still undisclosed amount.
“The investments in Sunchamp and IT Group are in line with the objective of the company to diversify its investment portfolio that currently includes renewable energy and waste management projects,” Greenergy said in a statement. The final terms and conditions of these investments will be subject to the results of a due diligence, the company said.
The energy firm’s subscription in Sunchamp will come from the latter’s unissued authorized capital stock. The real estate company focuses on the development of “self-sustaining agritourism areas” and currently has rights over some 145 hectares of land in Rosario, Batangas, Greenergy said.
As for the IT Group, Greenergy said it executed a binding term sheet for the acquisition of the 25 percent stake.
IT Group is engaged in the business of providing management consultancy, technology services and outsourcing services, ranging from small, medium to large organizations. The IT firm provides enterprise resource planning, customer relationship management, enterprise collaboration, IT service management, enterprise infrastructure, enterprise content management, web design and development, outsourcing services, custom software development and mobile application integration.
Greenergy earlier said it was acquiring a 26 percent stake in the Agricultural Bank of the Philippines, Inc., which is engaged in the business of extending rural credit to small farmers and tenants and to qualified rural industries or enterprises.
The energy firm is also investing in biomass projects in China, where the Philippine firm is set to acquire a majority stake in Zhongshe Renewable Energy Corp. The biomass projects in China are being undertaken in synergy with the Heilongjiang Beidahuang Seed Group Co. Ltd. The Beidahuang Group is the Chinese partner of publicly-listed agribusiness firm AgriNurture Inc. (an affiliate of Greenergy).
Presently, Greenergy fully owns Winsun Green Ventures Inc, the vehicle firm for acquiring and developing windmill energy projects; 60 percent of Biomass Holdings Inc, which has a 64 percent stake in San Carlos Biopower Inc. (developer of the ongoing 19-megawatt biomass power plant project in Negros Occidental); a 50 percent interest in Isabela Alcogas Inc.; and investments in waste recycling and management through Total Waste Management and Recovery System.
