High-end property developer Shang Properties Inc. is to spend P1.42 billion for acquiring more shares in its subsidiary KSA Realty Corp in a bid to raise its equity in the group.
In a disclosure to the Philippine Stock Exchange on Wednesday, Shang Properties said it has purchased 85.77 percent of 207,082 shares of Ocmador Philippines B.V. in KSA at P6.855 apiece.
Ocmador Philippines is a special purpose vehicle of ING Real Estate.
The transaction raises Shang Properties’ equity in KSA from 52.9 percent to 70 percent, the disclosure said.
“…the long term financial projections of KSA promises a good return on investments,” Shang Properties said.
Earlier, the vice president and financial controller pf Shang Properties, Kinsun Ng, had said during an interview that the ING Group volunteered to sell its shares. He noted that the ING Group previously held a 20 percent stake in KSA.
KSA is the owner of the Enterprise Center, an office building on Ayala Avenue in Makati City. Aside from the ING Group and Shang Properties, other shareholders of KSA include A. Soriano Corporation (ANSCOR), and Flory Co. Inc., an affiliate of the Kuok Group.
Shang Properties is the property development arm of the Kuok Group in the Philippines.