Crown Equities gives up control of South Luzon tollway firm

Publicly-listed holding firm Crown Equities Inc. (CEI) has ceded control of its tollways unit Hopewell Crown Infrastructure Inc. to a consortium led by Northeast Development & Acquisition Corp.

In a disclosure to the Philippine Stock Exchange, CEI said it has given up control of Hopewell Crown after the conditions for closing the transaction were satisfied last March 2.

CEI said it has decided to transfer its 90- percent interest in Hopewell Crown to allow the company to begin to deliver its commitment under the joint venture agreement with the Philippine National Construction Corp. (PNCC).

"Given that Hopewell Crown is still at its pre-operating stage, the disposition of Crown Equities’ investments would result in a partial but earlier recovery and would allow Crown Equities to sidestep a larger cash requirement to fund the project’s equity," CEI said.

Hopewell Crown is a strategic partnership formed in 1997 between CEI and Hong Kong-based Hopewell Holdings Ltd. It has a joint venture agreement with the PNCC to undertake the rehabilitation, expansion, operation and maintenance of the South Luzon Expressway (SLEX) from Alabang in Muntinlupa to Sto. Tomas, Batangas at a total cost of about P29 billion.

CEI is a Filipino-owned publicly listed investment holding company with special focus on infrastructure, property and healthcare.