Kuok-EDSA Properties merger okayed

REPORT FROM BUSINESSWORLD EDSA Properties Holdings, Inc. and Kuok Philippine Properties, Inc. expect to complete the merger in the third quarter after the listed companies secured approval of respective stockholders in their annual meeting Thursday. "With this merger, we are going to create a wider shareholder base and increase free float or liquidity of the shares. We hope this will bring our share price higher. We think the merger will focus investor interest on one list company," said Andres D. Bautista, who is chief executive of both companies. Edsa Properties will assume the liabilities of Kuok Philippine Properties together with all the obligations and undertakings. The exchange ratio of the merging entities will be one share of Edsa Properties for every seven of Kuok Philippine Properties. Both companies have Edward Kuok Khoon Loong as chairman. As the surviving company, Edsa Properties will be known as Shang Properties, Inc. "This will allow Edsa Properties to acquire a land bank that can broaden product offering; it is a cashless acquisition of properties," he added. Among the assets of Kuok Philippine Properties are the 107-hectare property in Tagaytay, a 6.7-hectare property in Mactan right beside Shangri-la Mactan Island Hotel and Resort complex, a 400-hectare property in Mabini, Batangas, a 20-hectare property in Naic, Cavite, a 35% interest in Caylabne Bay Resort in Ternate Cavite, development rights to a 10,800-square meter property in Malugay St. in Makati City, and a 1,384 square meter lot in Bonifacio Global City. "Shang Properties has an exciting future driven by opportunities the merger will bring. It is an entity with regional links, strong sponsors, and committed management resourced with skilled professionals. It has a strategic vision to become a leading entity in the real sector. This company will be shareholder-focused and committed to driving performance with high levels of corporate governance and citizenship," Mr. Bautista said. Edsa Properties is affiliated with the Kuok Group and was formed to primarily engage in property development and investments. It leases its property to the Shangri-La Plaza Corp. and the EDSA Shangri-La Hotel. The company also owns a car park building, which it leases to the shoppers and patrons of Shangri-La Plaza mall and the EDSA Shangri-La Hotel. Mr. Bautista said Kuok Philippine Properties has several projects in the pipeline but will announce these as Shang Properties. New hotel In a separate interview, Mr. Kuok said his company is looking at putting up a hotel in the 1.2 hectare property of Bases Conversion and Development Authority (BCDA). Hong Kong-based Shangri-La Hotels and Resorts, the largest Asian-based deluxe hotel group in the region, has signified its interest to build a six-star luxury hotel in Bonifacio Global City, BCDA President and CEO Narciso Abaya said earlier. A preliminary presentation to the BCDA Board held last month. " We are looking into the possibility. It is still under study," Mr. Kuok said. — Ruby Anne M. Rubio/BusinessWorld