Tycoon Lucio Tan-led conglomerate LT Group Inc. is beefing up its infrastructure arm, Asia’s Emerging Dragon Corp. (AEDC), in support of its bid to participate in big-ticket projects such as the P105-billion Ninoy Aquino International Airport (Naia) modernization program.
In a disclosure to the Philippine Stock Exchange, LTG committed to infuse P900 million in fresh capital into AEDC by subscribing to nine million common shares with a par value of P100 per share from the authorized but unissued capital stock of this company.
“Since AEDC is involved in infrastructure projects and is part of the proponents of the Naia project, LTG deems it necessary to support AEDC in its bid to take part in the development of the airport by infusing additional capital,” the disclosure said.
AEDC is part of a “superconsortium” composed of seven of the country’s largest conglomerates that recently bagged the original proponent status for the Naia rehabilitation project.
LTG owns the majority of the common shares of Kenrock Holdings Corp. which, in turn, owns the majority of the common shares of AEDC. LTG and AEDC have common directors.
Pursuant to the general investment policy of the company, the disclosure said LTG president and chief operating officer Michael Tan had the authority to represent the company in the transaction.
The initial payment for the subscription shares was 25 percent of the total subscription price, or P225 million.
The other members of the Naia superconsortium are Aboitiz InfraCapital Inc., the Ayalas’ AC Infrastructure Holdings Corp., tycoon Andrew Tan-led Alliance Global Group Inc., Gotianun-led Filinvest Development Corp., Gokongwei-led JG Summit Holdings Inc. and Metro Pacific Investments Corp. The group has teamed up with Changi Airport Consultants Pte. Ltd., a wholly-owned subsidiary of Changi Airports International Pte. Ltd. for this project.