Aboitiz Land Inc. has bought out the majority stake of Lima Land Inc. (LLI), the industrial real estate unit of the Alcantara Group’s Alsons Land Corp. (ALC), for P1.36 billion.
Two separate disclosures at the Philippine Stock Exchange showed that ALC and AboitizLand signed a purchase agreement on Friday for the latter’s acquisition of ALC’s 60-percent interest in LLI for a purchase price of P1.4 billion. LLI is the owner and operator of the LiMA Technology Center, an industrial park located in Batangas that is registered under the Philippine Economic Zone Authority.
Aboitiz Equity Ventures Inc. (AEV), the parent company of AboitizLand, specified that the purchase price includes LLI’s interests in its wholly owned subsidiaries, Lima Utilities Corp. and Lima Water Corp.
Alsons Consolidated Resources Inc. (ACR) said in a separate filing with the local bourse that LLI and its subsidiaries, collectively known as the LiMA Group, have been a significant part of the Alcantara Group.
“ALC’s divestment from LiMA Land is in keeping with ACR’s decision to make power generation in Mindanao and other key areas of the Philippines the core focus of its is business,” ACR further said.
However, the Mindanao-based group said that property development will still remain a part of ACR’s and the Alcantara Group’s portfolio.
The buyout is expected to close no later than 30 days after the execution of the agreement.
“Both ACR and AEV are confident that this agreement is in the best interest of LTC’s [Lima Technology Center] locators, employees, and the host cities of Lipa and Malvar. Both parties look forward to a smooth transition for the industrial park’s new management and the new members of the board of directors,” ACR further said.
AboitizLand, the real estate arm of the Aboitiz Group, is the developer and operator of two economic zones, the Mactan Economic Zone II in Barangay Mactan, Lapu Lapu City, and the West Cebu Industrial Park in Balamban, Cebu, through its subsidiary, Cebu Industrial Park Developers Inc.