MANILA, Philippines–Property developer Philippine Realty and Holdings Corp. is selling a 70-percent stake in non-life insurance subsidiary Meridian Assurance Corp. to bring in a strategic partner that can provide for rising capital requirements.
In a disclosure to the Philippine Stock Exchange on Thursday, Philrealty said it had entered into a deal to sell the controlling stake in Meridian to a group of private investors for P191 million.
The prospective transaction, however, is still subject to approval by the Insurance Commission.
The deal is part of Philrealty’s efforts to focus on core property businesses. “Aside from that, I don’t think we’ll meet the capital requirement set by the Insurance Commission,” Philrealty president Amador Bacani said in a telephone interview.