MPIC set to reduce Landco stake

MANILA, Philippines - Metro Pacific Investments Corp., the local unit of Hong Kong conglomerate First Pacific Co. Ltd., is reducing its stake in high-end developer Landco Pacific Corp. MPIC told the Philippine Stock Exchange that it received board approval to sell 17-percent of Landco shares to partner Alfred Xerez-Burgos Jr. for about P203. 28 million. The divestment will cut MPIC's stake in Landco to 34 percent from 51 percent and will mean that the developer will no longer be a subsidiary of the holding firm. Presently, Xerez-Burgos, through AB Holdings, owns 49 percent of Landco. AB Holdings would also be required to pay the principal P500-million loan plus interest extended by MPIC to Landco. AB Holdings has until August 19, 2009, or two months upon today, to settle the Landco loan through transferring several assets of the property developer. These assets include shares in Landco subsidiaries which own shopping malls, model houses, Club shares and lots in Landco projects. The transaction is seen to pave the way for MPIC to leave its real estate business, helping it focus on infrastructure, utilities, and health care. MPIC is looking to complete the acquisition of about 10-percent shares in Manila Electric Co., the country’s largest electricity distributor, from the retirement fund of the Philippine Long Distance Telephone Co. The PLDT Beneficial Trust Fund acquired its Meralco stake for P10.3 billion. MPIC is the majority owner of the consortium which operates Maynilad Water Services Inc., which supplies water to Metro Manila’s west zone. It also controls the operator of the North Luzon Expressway. AB Holdings was given the option to acquire MPIC’s stake “because it has succeeded in creating a niche market and establish a good brand name in the property sector," MPIC chairman Manuel V. Pangilinan said. Besides its mall developments in Lucena, Legazpi, and Cabanatuan, Landco is known for its high-end leisure and residential real-estate properties in Southern Luzon, among other areas. GMANews.TV