MPIC decides to sell Landco stake to partner

MANILA, Philippines- Metro Pacific Investments Corp., the local unit of Hong Kong conglomerate First Pacific Co. Ltd., will let go of its majority stake in real estate company Landco Pacific Corp. In a statement to the exchange, MPIC said it received board confirmation of its proposal to dispose of Landco. Terms of the sale, however, will still have to be approved by the board and the stockholders. A special stockholders meeting is set on February 20. MPIC earlier announced that AB Holdings Inc. and Alfred Xerez-Burgos Jr., Landco president, were interested in buying out its stake in the developer. MPIC holds the majority stake while AB Holdings presently owns 49 percent of Landco. MPIC has earlier lent Landco P500 million to help pay for its debts and fund projects. The investment firm's board also approved the share-swap agreement with French utility Lyonnaise Asia Water Pte. Ltd (LAWL), which will pave the way for MPIC to acquire majority stake in Maynilad Water Services Inc. Maynilad provides water to Metro Manila's west zone. MPIC, in turn, has agreed to issue 7.75-percent stake of its shares to LAWL. MPIC has partnered with Consunji-led DMCI Holdings Inc. for the acquisition of government's stake in Maynilad. LAWL was the partner of the Lopez family which originally won Metro Manila's west concession in 1997 until Maynilad sought protection from creditors. After being temporarily controlled by government, it was later sold to a venture between MPIC and DMCI. GMANews.TV