In a disclosure statement, RCBC said its board of directors has approved MITI’s offer to acquire the property located along G. Puyat Avenue, which is being sold in view of the bank’s transfer to its new headquarters at the Yuchengco Towers, right at the corner of G. Puyat and Ayala Avenues.
The property consists of land with a lot area of 8,371 square meters, and a three-story building with basement, with a total floor area of 15,572 sqm.
The deal can be considered as a transaction between two sister companies, since MITI is now controlled by iPeople Inc. (formerly Petrofields Inc.), a listed company at the Philippine Stock Exchange.
In March last year, the Yuchengco group acquired full ownership of MITI from the Mapua family for a total consideration of P975 million. Under the terms, iPeople’s parent firm House of Investments will contribute P250 million as deposit for future subscription while the balance of P725 million will be funded partly by proceeds from the stock rights offering to iPeople shareholders and through loans from banks with MITI shares as collateral.
The entry of MITI into the Yuchengco camp not only diversifies the group’s interests into education but also opens up a possible money-making venture, particularly with MITI’s strong hold on the much sought-after technology and engineering courses.
Because of this niche market, MITI is also a potential candidate for stock listing, following Centro Escolar University and Far Eastern University.
However, iPeople has indicated it does not have any plans yet to list MITI either through an IPO or a backdoor listing. At present, the company is holding preliminary talks with foreign information technology firms to establish linkages in support of MITI’s science courses.
Last year, iPeople said it increased its authorized capital from P100 million to P2 billion and engaged in a rights offering and private placement deals in order to raise funds for MITI’s expansion, which is hinged on a national and regional expansion to distinguish itself as the leading provider of technology-focused degree programs.
Among the new academic programs being offered by the school include B.S. Computer Science, B.S. Information Technology, M.S. Geotechnical Engineering and Ph.D. Chemical Engineering. – Conrado Diaz Jr.