The Market Monitor Minding the Nation's Business
Property conglomerate Ayala Land Inc. (ALI) has paid 25 percent of its P5.625 billion common shares subscription into Prime Orion Philippines Inc. (POPI) equivalent to 51.06 percent of total outstanding shares.
The subscription agreement between POPI and ALI last August 13 followed an agreement to extend the due diligence period for another 30 days or until December 17, 2015.
ALI subscribed to 2.5 billion common shares of stock of POPI for a 51.06 percent share of the total valued at P2.25 per share.
The remaning shares will to be paid upon fulfillment of certain terms and conditions.
To implement the ALI subscription, POPI shall file with the Securities & Exchange Commmission (SEC) an application for an increase in its authorized capital stock from P2.4 billion to P7.5 billion, divided into 7.5 million common shares of stock, with par value of P1 per share.
POPI, incorporated since 1989, functions as an investment holding company. The merger of the Company with First Lepanto Corp. paved the way for the entry of the Guoco Group of Hong Kong through its affiliate, Guoco Assets (Philippines) Inc., as principal shareholder of the company. In 1994, the company was renamed as Guoco Holdings (Philippines) Inc., and again changed its name to the present one on January 4, 2002.
POPI, at present, has interests in real estate and property development, manufacturing and retailing/distribution, non-life insurance and other allied services, organized under several intermediate holding companies.
These companies are Orion Land Inc. (OLI), Orion I Holdings Philippines, Inc., and OE Holdings, Inc. OLI that wholly-owns Tutuban Properties, Inc. (TPI), which holds the lease and development rights over a 22-hectare market district in downtown Divisoria.
On the property sits the Tutuban Center, an integrated wholesale and retail complex.
On December 22, 2009, TPI renewed its contract of lease with the Philippine National Railways for another 25 years, or from September 5, 2014 to 2039. Other affiliates of the company include FLT Prime Insurance Corporation; Orion Solutions, Inc.; and BIB Aurora Insurance Brokers Inc. RIZA LOZADA