MANILA, Philippines - Property firm Philippine Realty & Holdings Corp. (Philrealty) is unloading a majority stake in its non-life insurance firm for almost P200 million.
In a disclosure to the stock exchange yesterday, the company said it “entered into an agreement with a group of private investors to sell its 70-percent stake in Meridian Assurance Corp.â€
Under the deal, Philrealty will sell its non-life insurance subsidiary for P191 million, subject to approval of the Insurance Commission.
Specifically, the real estate firm plans to unload 1.75 million Meridian Assurance shares at P109.14 apiece.
As of end-2012, Meridian Assurance had P231 million in net assets, up from P195.39 million a year earlier.
In 2012, Meridian Assurance posted a net income of P17.05 million, a turnaround from a P7.56-million loss the previous year “due to a sale of property located at Quezon City with a gain in the amount of P6.74 million.â€
It also recorded higher interest income from money market placements to P3.41 million in 2012 from P2.99 million in 2011.
Meridian Assurance, which is 86.66-percent owned by Philrealty, was incorporated and registered with the Securities and Exchange Commission in 1960 to engage in the business of non-life insurance and guarantee of any kind.
Other subsidiaries of Philrealty are PRHC Property Managers Inc., Universal Travel Corp., Le Cheval Holdings Inc., Tektite Insurance Brokers Inc. and Alexandra (U.S.A) Inc.
For its main business, Philrealty allotted P5 billion for a mixed-used project in Bonifacio Global City (BGC).
Philrealty and Greenhills Properties Inc. last year signed a joint venture deal to develop a 6,400-square meter (sqm) prime property in BGC. It will feature three towers: one office, one hotel or serviced apartment and one residential.