Philippine Realty and Holdings Corp. (Philrealty) has sold the bulk of its stake in a nonlife insurance firm to private investors for P191 million, the company informed the local bourse.
In a disclosure to the Philippine Stock Exchange on Thursday, Philrealty said that it has entered into an agreement with a group of private investors to sell its 70-percent stake in Meridian Assurance Corp., the company’’s nonlife insurance subsidiary.
The transaction, which is still subject to the approval by the Insurance Commission, is valued at P191 million. No further details were disclosed. Some time last year, Philrealty beefed up the capital of Meridian Assurance by P30 million to comply with the requirement imposed by Insurance Commission for nonlife insurance companies.
“This is to advise that our company made an additional investment of P30.3 million in subsidiary Meridian Assurance Corp. to comply with the minimum paid-up capital requirement imposed by Insurance Commission for nonlife insurance companies,” Amador Bacani, president of Philrealty, previously told the local bourse.
During the first half of last year, the listed real estate firm saw its profit dipping into a net loss.
In its financial statement, Philrealty reported that it posted a net loss of P9.95 million for the first six months of 2013, coming from a net income of P9.97 million in the same period in 2012. Philrealty’s profit before tax was also down to a net loss of P9.3 million from a net income of P10.4 million year-on-year. For the second quarter of last year, the company’s earnings plunged from a net income of P1.9 million to a net loss of P8.6 million.
Moreover, Philrealty reported that its interest income dropped to P7.45 million in 2013 from P9.75 million in 2012, due to usage of some invested funds for its Skybreeze Tower project. Miscellaneous income also decreased to P2.11 million in 2013 from P10.10 million in 2012.
Despite losses in earnings, Philrealty reported that the sales from its condominium units climbed by 11.50 percent from P108.11 million in 2012 to P120.54 million in 2013, due to additional sales booking for its Skyline and Icon Plaza projects.