RAMOS family-led Anglo Philippine Holdings Corp. (Apo) is breaking into the property development business with the acquisition of a 201-hectare land adjacent to the Subic Bay Freeport Zone in Bataan.
In a disclosure to the Philippine Stock Exchange, Apo said it had signed a deal to acquire 97.59 percent of the outstanding capital stock of Tipo Valley Realty Inc. (TVRI), which owns the 201 hectares or 240 parcels of land in Barangays Mabiga and Sacrifice Valley in Hermosa, Bataan.
“The company intends to develop the TVRI properties as a special economic zone as part of its property development initiatives,” the company said.
The deal involved 2.29 million shares purchased at P130.59 per share, translating to a P299-million deal.
The land was sold by Apo stockholders Alakor Corp. and Presentacion Ramos.
The deal is subject to the completion of due diligence, appraisal efforts and closing conditions. For instance, the parties seek clearance from local and national government regulatory agencies, notably Department of Agrarian Reform, Department of Environment and Natural Resources, Philippine Economic Zone Authority, the local government units of Bataan and the Subic Bay Metropolitan Authority.
The deal is also subject to “continuing market demand for special economic zones and complementary governance and incentives guarantees,” alongside “overall economic conditions from project execution to completion.”
Assuming that the deal would be closed, the company said it could generate revenues from the general operation as well as lease and use of the special economic zone, adding this would have a “significant positive impact on the future prospects of the company.”
“Moreover, the acquisition will establish the presence of the company in the property development sector and create a more balanced and diversified investment portfolio,” the disclosure said.