Ala Eh, Greenergy joint venture in Batangas ditched

MANILA  -Ala Eh Knit Inc., a subsidiary of AbaCore Capital Holdings Inc.,  and  Greenergy Holdings Inc. abandoned plans to construct a logistics center and food terminal in Batangas City.

In separate disclosures on Friday, AbaCore and Greenergy announced they “mutually agreed” to terminate their memorandum of agreement to develop and operate the establishment within a three-hectare property in Barangay Sta. Rita effective immediately.

Both parties did not disclose the reason behind the cessation of their joint venture announced in March 2021.

“Moving forward, [Greenergy] will focus on its core investments and projects in the areas of renewable energy and sustainable community development,” Greenergy said.

If the plan pushed through, Ala Eh would have been the corporate vehicle for the logistics center and food terminal complex.

Ala Eh was supposed to secure regulatory approvals to change its corporate name, increase its authorized capital stock to P1.5 billion and change its primary purpose allowing it to engage in the business of operating, managing, leasing and developing the logistic center and food terminal complex.

Supposedly, Ala Eh would contribute the property to the undertaking in exchange for shares equivalent to 40 percent amounting to P600 million.

On the other hand, Greenergy would have infused P900 million by subscribing to Ala Eh’s unissued capital stock tantamount to 60 percent.

Greenergy would also manage the construction, development and operation of the logistics center consisting of cold and dry storage facilities, agriprocessing facilities and other facilities.