AEV takes over Aboitiz Land for P3.2B
Conglomerate Aboitiz Equity Ventures Inc. has completed its P3.2-billion acquisition of 100 percent of Aboitiz Land Inc., marking its diversification into the real estate business.
In a disclosure to the Philippine Stock Exchange on Tuesday, AEV said it had executed the share purchase agreement and the transfer documents effecting the takeover of the real estate company.
The property unit was bought by AEV from its major shareholder Aboitiz & Co. Inc. as part of its plan to expand its earning capacity in a sector that benefits from a growing domestic economy and Filipinos’ improved earning capacity.
AboitizLand is one of Cebu’s key real estate developers with investments in residential, commercial and industrial developments and property management.
It is also the developer and operator of two economic zones: the Mactan Economic Zone II in Lapu Lapu City and the West Cebu Industrial Park in Balamban, through its subsidiary Cebu Industrial Park Developers Inc.
By adding real estate to its portfolio, AEV seeks to add to its core power, banking and food businesses.
Of AEV’s P11.8-billion net profit in the first semester (up 16 percent year on year), the power business accounted for the lion’s share of profit equivalent to 79 percent, while the banking and food units contributed 17 percent and 4 percent, respectively.
Aside from flagship Aboitiz Power Corp., AEV controls Union Bank, thrift bank City Savings Bank and feed manufacturer Pilmico Foods Corp.