RVO cuts deal with Ashmore; assets split

Luxury developer Alphaland Corporation’s feuding shareholders Roberto V. Ongpin, popularly known in local business circles by his initial RVO,   and the Ashmore group have reached a compromise which will result in the two shareholders dividing properties owned by.

In a disclosure to the Philippine Stock Exchange, Alphaland said it has signed a definitive agreement with shareholders Alphaland Holdings (Singapore) Pte Ltd. (AH) and Masrickstar Corporation, which are owned by Ashmore, to settle all the company’s disputes with AH and Masrickstar.

Under the agreement, Alphaland will transfer its shareholdings and interests in certain assets to a newly incorporated company owned by AH and Masrickstar.

These include 100 percent of Alphaland Makati Tower Inc. which owns The Alphaland Tower along Ayala Avenue, Makati City and 100 percent each of Alphaland Marina Club Inc. and of Alphaland Marina Corporation, which is currently developing the Alphaland Marina and Country Club project in the Manila Bay reclamation area in Parañaque City.

Also to go to the Ashmore group is Alphaland’s 50 percent stake of the Alphaland group in Alphaland Bay City Corporation, the joint venture company formed by the Alphaland group and the Wenceslao group to develop the 32 hectare Alphaland Bay City project at the Aseana Business Park, Parañaque.

Alphaland will also give up its 60 percent interest in the Boracay Gateway project, the unincorporated joint venture between Alphaland and Akean Resorts Corporation to develop Akean’s 500 hectares of land in Caticlan (Malay) and Nabas, Aklan.

In return for these, AH and Masrickstar will give up all of its Alphaland shares in favor of Alphaland. It will also pay Alphaland P2.5 billion in cash in two tranches.

As a result of these transactions, AH and Masrickstar will no longer be shareholders of Alphaland and Alphaland will no longer have any stake in the transferred assets.

Alphaland will remain majority-owned and controlled by the Ongpin group and its remaining assets will include Alphaland Southgate Tower and Mall, Alphaland Makati Place (including The City Club), Alphaland Balesin Island Club, and Alphaland Baguio Mountain Lodge Homes.

However, the PSE said it will continue involuntary delisting procedures against Alphaland, whose shares are currently under trading suspension. This is part of penalties being slapped on the firm for multiple violations of Exchange rules and its Listing Agreement with the PSE.

These stem from allegations from the Ongpin group that Ashmore faked a sale of Alphaland shares to comply with the PSE’s minimum public ownership rule as well as an unauthorized stock rights offering.