Greenergy, AbaCore to build logistics, food terminal complex in Batangas

Listed firms Greenergy Holdings Inc. and AbaCore Capital Holdings Inc. are planning to build a logistics and food terminal complex in Batangas City, aimed at facilitating the distribution of the country's produce to local and global markets.

In a disclosure to the Philippine Stock Exchange on Thursday, Greenergy said it entered into a memorandum of agreement (MOA) with Ala Eh Knit Inc., an affiliate of Abacore, “for the development and operation of a logistics center and food terminal in a three-hectare property in Barangay Santa Rita, Aplaya, Batangas City.”

Under the MOA, Ala Eh shall amend its Articles of Incorporation as follows:

• increase its authorized capital stock to P1,500,000,000.00
• change its primary purpose to allow it to engage in the business of operating, managing, leasing, and developing the Logistic Center and the Food Terminal Complex
• change its corporate name

Shareholders of Ala Eh also agreed to infuse a three-hectare property into Ala Eh, which is equivalent to 40% of the company’s total outstanding capital stock after it has been increased to P1.5 billion.

Greenergy, in turn, shall subscribe to 60% shares of Ala Eh’s total outstanding capital stock, paving the way for it to acquire majority ownership of Ala Eh.

The total amount of Greenergy’s intended subscription is P900,000,000.00.

Once the capital restructuring of Ala Eh is completed, Greenergy said it will manage the construction, development, and operation of the planned logistics and food terminal complex which will include cold and dry storage facilities, agri-processing facilities and other related infrastructure necessary for marketing and procurement activities.

The facility, which is accessible to the Batangas port, will ensure that agricultural produce are safe and fresh before they are distributed to their respective local and international markets, according to Greenergy.

The logistics and food terminal complex is envisioned to boost agricultural productivity and enable farmers and fishermen to reach a wider market in the country and across the globe.

The project will also enhance Greenergy's food storage capacity and boost its trading and export capabilities.

“It is the first step in Greenergy’s goal of establishing food terminals in each region of the country that would help in achieving food security and rolling out a commodity and futures exchange,” it said.

Greenergy has been diversifying its portfolio to include agriculture, agri-tourism, real estate development, banking and finance and information technology.—AOL, GMA News