• Premiere Horizon buys 55% of Baguio’s Goshen Land

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    LISTED Premiere Horizon Alliance Corp. (PHA) is buying a 55-percent stake in Baguio-based Goshen Land Capital Inc. (GLCI) in a bid to “transition” from mainly a company with non-recurring sources of income to a firm with an expanding source of recurring income.

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    In a disclosure to the Philippine Stock Exchange, PHA said it signed a memorandum of agreement (MOA) with GLCI on Thursday to acquire 880,000 shares at P500 each – 600,000 subscribed shares and 280,000 secondary shares – equivalent to 55 percent of GLCI. The total purchase price is P440 million.

    PHA said it will initially subscribe to 270,000 GLCI shares for P135 million and 280,000 shares for P140 million, or 55 percent of the GLCI’s authorized capital of 1 million shares.

    GLCI will then increase its authorized capital to 1.6 million and PHA will subscribe to an additional 330,000 shares for P165 million, bringing its total shareholdings in GLCI to 880,000 shares. Existing shareholders of GLCI will be diluted to a 45­percent minority stake equivalent to 720,000 shares.

    PHA paid P200 million upfront when the MOA was signed, with the balance to be paid in partial amounts – P150 million on June 30, P50 million on July 15, and P40 million in December.

    “The investment in Goshen will considerably improve Premiere Horizon’s consolidated financial position. The projected income from Goshen Land, including CUBES and Redstone, will transition Premiere Horizon from non­recurring to recurring high growth income,” PHA said.

    “Premiere Horizon’s investment will accelerate Goshen Land’s growth and expansion. Goshen Land’s President and Chief Executive Officer Alexander Bangsoy – a 2013 Ernst & Young Entrepreneur of the Year Finalist – will continue to head the management team of the company,” the disclosure read.

    “With the impending Asean Economic Community integration, PHA – through its subsidiaries – aims to be a regional player in food security, natural resources development, tourism, shelter and communities,” it added.

    Incorporated in May 2007, GLCI is focused on building low to midrise residential and commercial condominiums as well as residential subdivisions and student dormitories.

    Incorporated in 1988 as a motion picture producer, PHA is now an investment holding company focusing on projects in the countryside. According to its profile on the PSE website, the company is engaged in sustainable development in tourism, food security, natural resources development, and life sciences and technology.

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