Closing of MPC deal with ALI, Greenfield delayed

Metro Pacific Corp., the local flagship of Hong Kong’s First Pacific Co. Ltd., announced yesterday that the closing of the deal involving the assignment of its $90-million loan from Larouge B.V. to Ayala Land Inc. and Greenfield Development Corp., will take 15 more days to be completed.

In a disclosure to the Philippine Stock Exchange, MPC said the closing of the transaction, which was originally scheduled for April 2, 2003 has been extended by two more weeks, or until April 17.

MPC said the extension was mutually agreed upon by all parties concerned to allow more time for the completion of conditions required to close the memorandum of agreement signed last Nov. 23.

Among these conditions precedent are final documentation of related transactions and the securing of certain government approvals and third-party consents.

The loan extended by Larouge, a subsidiary of FPC, to MPC in April 2001 was secured by a 50.4-percent interest in Bonifacio Land Corp. (BLC). It was used to refinance a maturing convertible bond obligation.

In exchange for the acquisition of MPC’s 50.4-percent interest in BLC, Ayala and Greenfield will pay $45 million each and will jointly develop the vast Bonifacio Global City.

Upon closing of the transaction, MPC’s interest in BLC will be reduced from its current 72.9 percent to 22.5 percent. It will remain the second largest shareholder of BLC and also own 10.4 hectares of property known as the Northern Central Business District in addition to Pacific Plaza Towers. MPC is also entitled to three of the 15 board seats at BLC.

This transaction substantially benefits MPC by the immediate reduction of approximately P4.7 billion in parent company debt.

MPC has assured that it will remain an active participant in the property market through its continued minority stake in BLC and in other directly-owned development companies. Management also anticipates that the entry of GDC and ALI will enhance the prospects for the Global City.