Ongpin group wrests control of Alphaland from UK's Ashmore

The group led by businessman Roberto V. Ongpin now has the controlling stake in listed property developer Alphaland Corp. after a capital call that diluted former majority shareholder UK-based Ashmore group.

 

In an e-mailed statement, the Ongpin group said it now owns 50.57 percent of Alphaland and 13 board seats, while Ashmore’s holdings was reduced to 24.41 percent and two board seats.

 

“The Board of Alphaland has simply come to the conclusion that Ashmore is more of a hindrance than a help in pursuing its various projects," the statement read.

 

Alphaland is chaired by Ongpin.

 

Prior the capital call, the Ongpin group owned 21.73 percent while the Ashmore group held 69.37 percent.

 

The Alphaland board approved in a January 2 meeting a capital call, with payment deadline on January 15 – if Ashmore failed to meet the obligation, its holdings would be diluted.

 

In the same meeting, the board approved a stock rights offering for minority shareholders at the same terms as the capital call to ensure that investors holding small interests in the company would not end up with diluted shareholdings.

 

Ashmore asked the Makati Regional Trial Court to stop the the capital call but was turned down by the court.

 

Alphaland revealed what is supposedly a serious irregularity on the part of Ashmore which misrepresented a 2.5 percent block of shares by saying it has been sold to meet the 10 percent minimum float required by the Philippine Stock Exchange.

 

The 2.5 percent block is included in the 24.41 percent interest of Ashmore in Alphaland.

 

In order to meet the 10 percent public float rule starting in January 2013, Ashmore unit Alphaland Holdings (Singapore) Pte Ltd. reportedly sold 49.608 million common shares equivalent to 2.5 percent of Alphaland at P19 apiece to Credit Suisse (Singapore) Ltd. on Dec. 31, 2012.

 

The sale lifted Alphaland's public float to 10.53 percent from 8.03 percent and the PSE approved the resumption of trading of Alphaland shares on March 1, 2013.

 

However, Alphaland said it recently learned that Ashmore has remained the beneficial owner of the 2.5 percent share block, when this was communicated in writing by Ashmore itself.

 

Last July, the Ashmore group said it will divest from Alphaland, saying it was no longer willing to fund the company, but was unable to find a buyer for its interest in the company. 

 

According to the Ongpin statement, the Ongpin group has been funding Alphaland with P1.5 billion starting last year.

 

The Alphaland board pointed out that disagreements have not affected Alphaland’s bottom line, ending 2013 with record profits of P6.5 billion. – Danessa Rivera/VS, GMA News