Acesite group opposes sale of Manila Pavilion to Waterfront

The Acesite group, the controlling owners of Manila Pavilion Hotel, has contested the sale of its 75-percent interest in the hotel to Waterfront Philippines Inc. (WPI), arguing they were not informed beforehand of the deal by Equitable PCI Bank.

Acesite officials said they have filed a civil case with the Makati Regional Trial Court yesterday to protest the sale of the shares, which were pledged to EBC by virtue of a share mortgage dated Feb. 25, 1993.

"We have instructed our lawyers to conduct the necessary filings in the appropriate venues to protect our rights," Acesite Ltd. director Francis Lam said.

He pointed out that the British Virgin Islands-based Acesite Ltd., who owns the said shares in the publicly-listed Acesite (Philippines) Hotel Corp.– the owner of Manila Pavilion Hotel – has not sold the shares and has no immediate intention of doing so.

Just last month, Sino-i.com, the Hong Kong-based parent company of Acesite Ltd. increased its stake in Acesite Philippines by buying out its Hong Kong partners for HK$190 million (about P1.5 billion).

Acesite Ltd. owns 74,889,231 shares or 75 percent of Acesite Philippines. These shares, however, have been pledged by Acesite Ltd. to secure certain loans granted by EBC to affiliated companies of the Sino-i.com group.

Lam said there has been a previous understanding between Sino-i.com and its affiliates to liquidate the EBC loans and discharge to Acesite Ltd. the pledged stock. Until full liquidation by Sino-i.com of its loan obligations, EBC has the right to foreclose on the pledged shares.

But last Monday, Acesite officials said they were surprised by sale to WPI, the investment holding company for the hotel, leisure and tourism businesses of the Wellex Group of businessman William Gatchalian, through the cross sale at the Philippine Stock Exchange of 74,889,892 shares in Acesite Philippines at P1.66 per share, or an equivalent amount of P124.32 million.

In contrast, the purchase of more Acesite shares by Sino-i.com cost a hefty P19.79 each, a 214-percent premium over the last traded price of P6.30 per share in Jan. 30.

Acesite officials stressed that they are not aware that the said shares pledged to EBC have been foreclosed since the company has not received any notices of default nor foreclosure from the bank.

Manila Pavilion, which also houses the Casino Filipino, was previously managed by Holiday Inn, leaving the hotel operations to its owners Acesite Ltd. which is controlled by a group of British and Hong Kong businessmen thru Sino-i.com and Evallon Investment Ltd., both listed at the Hong Kong Stock Exchange. The group controls 75 percent of Acesite Phils., which was formed after it took over Manila Pavilion in 1988 in partnership with the Delgado family.

WPI, on the other hand, owns and manages the Waterfront Hotel and Casino in Mactan and Cebu City, the Waterfront Insular Hotel in Davao.