Aug 292013

MANILA, Philippines – The Ramos family’s flagship investment firm Anglo Philippine Holdings Corp. will focus on upstream oil exploration following its divestment in an upscale property firm.

Fresh funds from the P778-million sale of its shares in Shang Properties Inc. will finance higher investments in Philodrill Corp., the holding firm said in a regulatory filing.

“The company’s overall thrust is to gain meaningful participation in all its investments in natural resources, property development and infrastructure,” Anglo Holdings said.

“The company’s sale of its Shang Properties shares is in line with this thrust because the company intends to use the proceeds from the sale to acquire additional shares in Philodrill,” it added.

Anglo Holdings currently owns 1.71 percent of Philodrill, which is expected to increase to roughly 10 percent with the additional investment.

“From a minority interest in both Shang Properties and Philodrill, the company decided to consolidate its investment into a meaningful participation in Philodrill,” Anglo Holdings said.

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Anglo Holdings said it noted Philodrill’s higher dividend rate and better market liquidity.

“A bigger participation in Philodrill equates to a bigger share in dividends which…will be better than having separate minority interests in two companies,” it added.

The improved liquidity will also allow the holding firm to be flexible in realizing gains or minimizing losses.

Early this week, Anglo Holdings sold its 214.145 million shares or 4.5-percent stake in the local property unit of Malaysia’s Kuok Group for P778.46 million.

Upscale developer Shang Properties is banking on the property boom to sell out its One Shangri-La Place and the 64-story Shang Salcedo Place in Makati. Shang Properties is also into shopping mall (Shangri-La Plaza Mall), office space rental (Enterprise Center in Makati) and hotel operations (Shangri-La Hotel).

Philodrill, for its part, is part of the Galoc Production Co. (GPC) consortium that owns an oil production field in the Northwest Palawan basin.

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