Yuchengco Group of Companies/Facebook Page
MANILA -The Yuchengco Group is again selling a stake in EEI Corp., one of the country’s biggest construction companies, for P1.08 billion to raise funds for the retiring loans of a subsidiary.
In a disclosure, House of Investments (HI) announced its board had approved the sale of 14.35-percent ownership in EEI to Industry Holdings and Development Corp. (IHDC), a company owned by the Chua Group which has interests in construction supplies, logistics and real estate. No agreement for the transaction involving 148.66 million common shares has been signed yet.
Proceeds would be used for the subscription of P1 billion worth of preferred shares in subsidiary ATYC Inc.
“The additional investment will be used to reduce the loans in ATYC, Inc. This will reduce interest payment and exposure to market risk,” HI explained.
ATYC, an HI unit incorporated in 2022, owns the AT Yuchengco Center in Bonifacio Global City.
Last month, HI announced it would sell a 20-percent stake in EEI to RYM Business Management Corp., House Speaker Martin Romualdez’s private holding company, for P1.25 billion. After the sale to RYM, which is engaged in mining, real estate and media, HI’s ownership was reduced to 35.346 percent.
HI concluded the first quarter in the red after incurring a net loss attributable to equity holders of the parent company of P8.02 million, a turnaround from P373.88-million net income the previous year. —Tyrone Jasper C. Piad
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Yuchengco Group selling 20% stake in EEI to Martin Romualdez’s firm