Ayala Land seals P5.6B Tutuban deal

PROPERTY giant Ayala Land Inc. has sealed a deal to acquire majority interest in Prime Orion Philippines Inc. (POPI), owner and developer of the popular bazaar hub in Divisoria, Tutuban Center.

A deed of subscription had been executed whereby ALI suscribed to 2.5 billion common shares or 51.06 percent of POPI for P2.25 per share or a total block price of P5.625 billion, the two companies disclosed to the Philippine Stock Exchange on Friday.

ALI paid for the initial 25 percent of the block for P1.4 billion while the rest will be paid upon satisfaction of certain terms and conditions, the property firm said.

To implement the ALI subscription, POPI said it would file with the Securities and Exchange Commission an application for increase of its authorized capital stock from P2.4 billion to P7.5 billion, divided into 7.5 million common shares of stock, with par value of P1 per share.

ALI’s entry in POPI is seen to provide the financial muscle to redevelop Tutuban Center and double its retail space to ride on robust consumer spending in the country.