Century Properties buying power firm

Property developer Century Properties Inc. is taking over 93.58 percent of listed East Asia Power Resources Corp. for P127.4 million and making a tender offer to the rest of the shareholders of the dormant energy firm.

Century Properties has signed a deal with a private shareholder, El Paso Philippines Energy Co. Inc., paving the way for its acquisition of 91.69 percent indirect stake and 1.88 percent direct stake in East Asia, according to a regulatory filing posted on Thursday.

The company is offering to buy the minority shares for P0.04 apiece, higher than the P0.038 per share purchase price for the 93.8 percent stake. The tender offer will cost the property group up to P9.12 million.

The tender offer for some 228 million shares will start on Friday and end at noontime of July 11. Venture Securities Inc. is the transaction broker for the tender offer.

Shares of East Asia rose by 25 percent to P0.65 apiece on Thursday.

It has been rumored that Century Properties was looking for a publicly listed vehicle for backdoor listing on the exchange.

The Century Property group has yet to disclose plans on whether the power assets would be reopened or new businesses will be infused into East Asia Power.

The property firm is led by Jose Antonio, a former stock broker and special envoy to China.

The 25-year-old property developer has undertaken 40 major projects, including Essensa East Forbes in Fort Bonifacio, Medical Plaza Makati and Ortigas, Pacific Star Building and The Asian Hospital Medical Suites.

It is now one of the largest privately owned full-service real-estate firms in the Philippines, with more than $2 billion in assets under management.

In the meantime, the board of East Asia Power has approved the sale and transfer of the dormant corporations including East Asia Transmission and Distribution Corp. and East Asia Power Services as part of the conditions for the execution of the agreement with Century.