Tanco Group transfers PWU stake to listed firm JTH Davies

MANILA, Philippines - The group led by businessman Eusebio Tanco is assigning all its interests and obligations in Philippine Women’s University (PWU) to listed firm JTH Davies Holdings Inc.

The Tanco Group, which includes STI Colleges and Asian Terminals Inc., has infused P450 million in PWU in exchange for a 40-percent stake in the educational institution. The Benitez family still owns the controlling 60 percent of PWU, one of the oldest universities in the country.

In a disclosure to the stock exchange yesterday, JTH said it will acquire the P230-million loan of PWU with Banco De Oro and extend a loan amounting to P20 million to PWU.

PWU, in turn, shall transfer to JTH such number number of its shares in Unlad Resources Development equivalent to the loan to PWU as payment for the loan. Unlad is a real estate company controlled by the Benitez family and holds some assets which are used to support the educational thrust of PWU.

JTH shall also extend a P198-million loan to Unlad. It shall become a stockholder and owner of 40 percent of the total issued and outstanding capital of Unlad.

The board of JTH likewise approved the issuance of 795.817 million shares at P0.60 each for a total of P477.108 million.

Capital Managers and Advisors Inc., an existing shareholder of JTH and STI Education Services Group Inc., shall subscribe to the private placement shares.

PWU is a private non-stock educational institution which provides basic, secondary and tertiary education to its students at its campuses located in Manila and Quezon City.

The fresh capital will be used to refurbish, reconfigure and modernize the buildings and equipment of PWU at it main campus in Manila.

Meanwhile, JTH said it plans to increase the university’s student population from 4,000 to 15,000 over a period of five years.

With the financial support of the Tanco Group, PWU is now looking at building more campuses in other parts of the country and adding more academic courses and departments such as a health, nutrition and fitness school, and a law school.

PWU will synergize with the Tanco-led companies to strengthen and uphold PWU’s educational heritage and mission, and help sustain its autonomous status.