MANILA, Philippines – The group of former Trade Minister Roberto V. Ongpin has firmed up control of Alphaland Corp. after the trial court junked the plea of erstwhile British partner to cancel an equity infusion.
With Ashmore Group diluted to a minority stake, Alphaland management is moving forward with various projects including a share sale to increase its public ownership level.
In a disclosure, upscale property firm Alphaland said the Makati Regional Trial Court (RTC), in an order dated Jan. 22, upheld Ongpin’s position and denied Ashmore’s request for a temporary restraining order (TRO).
The Ongpin Group earlier secured 50.57 percent of Alphaland’s outstanding shares following a P1.5-billion capital call that was ignored by the London-based Ashmore Group.
Prior to the transaction, Ongpin Group owned 21.73 percent of Alphaland while Ashmore Group controlled 69.37 percent, which is now down to 24.41 percent.
“Instead of participating in the capital call, Ashmore Group applied for an ex parte TRO for 72 hours from the executive judge of the RTC on Jan. 14,” Alphaland said.
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The judge denied the application and had the case raffled. A hearing was then conducted on Jan. 16, on whether a 20-day TRO should be issued, Alphaland said.
Alphaland claimed that Ashmore Group misrepresented the sale of 49.6 million Alphaland shares worth P942 million to comply with the minimum public ownership requirement.
“The shareholders agreement was not properly and fully executed. And it is also void for being contrary to Philippine law,” Ongpin said.
Moving forward, Alphaland is pursuing a share sale to comply with the 10-percent minimum public ownership requirement of the local bourse.
“Alphaland is planning a private placement or a public offering of both primary and secondary shares within the year when market conditions make it feasible for the company to do so,” the company said.
“These steps will be undertaken by Alphaland in order to comply with the amended minimum public ownership rule,” it added.
Alphaland, whose shares were suspended since Jan. 20, has a public float of 5.07 percent.
“With the certainty in the majority ownership of the company, Alphaland management is confident that it will now be able to line up the cash required to complete Alphaland’s existing projects as well as to fund its future projects,” Alphaland earlier said.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between Ashmore Group and Ongpin‘s RVO Capital Ventures.
The board of Ashmore Group, which is looking to exit the local property business, reportedly did not agree to some corporate actions of Alphaland and refused to fund property development projects. The private equity firm earlier sought for Ongpin to leave the listed property company.
Alphaland is the company behind the P2-billion Alphaland Marina Club and the 32-hectare Bay City development along Manila Bay, the P4-billion Balesin Island Club in Quezon province, and the Alphaland City Club in the Makati central business district.
