Lucio Tan moves to consolidate property business under parent firm

The flagship company of Philippines’ second richest man intends to buyout the majority stakeholders – also his own companies – in its property development business Eton Properties. The move intends to consolidate Eton under Tanduay Holdings Inc., whcih was recently renamed into LT Group,   Lucio Tan-led Tanduay Holdings intends to buy 98.1 percent of the tycoon’s holdings in Eton Properties. The transaction is supposed happen once Tanduay Holdings has acquired 100 percent of outstanding capital stock of the Eton’s controlling shareholders – Paramount LandEquities Inc. and Saturn Holdings Inc.   In a disclosure to the Philippine Stock Exchange on Wednesday, Tanduay Holdings said the acquisition of Eton equity held by Paramount LandEquities and Saturn Holdings would come about after LT Group has acquired their respective equities.   Saturn Holdings has filed for an increase in capital stock, with the Securities and Exchange Commission, to 500 million common shares from 10 million at a par value of P1 per share.   Tanduay Holdings said it has subscribed to 490 million common shares or 98.99 percent of Saturn Holdings.   “The company’s subscription was paid in full by way of conversion into equity of a portion of the company’s advances to Saturn to the extent of P490 million,” Tanduay Holdings noted in its latest disclosure.   In an earlier disclosure, Tanduay Holdings said it has assumed the liabilities of Paramount LandEquities and Saturn Holdings – amounting to P1.87 billion – owed to British Virgin Island-based companies.   The debts would then be converted into equity in Eton, Tanduay Holdings noted.   Last July, Tanduay Holdings was renamed into LT Group Inc. to consolidate Tan’s business interests in alcohol and non-alcoholic beverages, cigarettes, property, banking, and airlines. — MJC/VS, GMA News