Ayala Land, Prime Orion wrap up P5.6-B share purchase deal

Ayala Land Inc. (ALI) has completed the acquisition of a 51.36-percent interest in Prime Orion Philippines Inc. (POPI).

In similar filings on the stock exchange Friday, the companies said a Deed of Subscription and a Supplement to the Deed of Subscription were executed on Wednesday covering 2.5 billion common shares of POPI.

The transaction, at P2.25 per share, totaled P5.625 billion.

ALI has already paid POPI P1,406,250,000.00 or 25 percent of the total subscription price on Wednesday, February 24. The balance of 75 percent will be paid "upon fulfillment of certain terms and conditions."

POPI is a holding company which owns the Tutuban Center in Manila through wholly-owned subsidiary Tutuban Properties Inc.

"The acquisition is aligned with ALI's thrust of expanding its leasing business," Ayala Land Senior Vice President Jaime E. Ysmael said in an earlier disclosure.

The property developer announced last week it has increased capital expenditure at P85.0 billion to support planned developments.

"This year, we will remain focused on introducing new projects that will address market demand and continue to work on achieving our growth targets in line with the objectives set in our 2020 plan," President and CEO Bernard Vincent Dy said.

For its part, POPI said it will file an application with the Securities and Exchange Commission (SEC) to increase its authorized capital stock to P7.5 billion from P2.4 billion, divided into 7.5 million common shares and priced at P1.00 per share. – Jon Viktor Cabuenas/VDS, GMA News