MANILA, Philippines - London-based private equity fund Ashmore Investment Management Ltd. allegedly misrepresented the sale of its shares in Ongpin-led Alphaland Corp., preventing the upscale property developer to comply with the minimum public ownership requirement.
In a regulatory filing, Alphaland said Ashmore Group misrepresented a share sale late in 2012, then negotiated with diversified conglomerate San Miguel Corp. (SMC) for a $400-million buyout.
“It has recently come to the information of Alphaland management that the sale was simulated and that Ashmore Group misrepresented the fact of the sale to Alphaland,†the company said.
On Dec. 31, 2012, Ashmore Group reported that unit Alphaland Holdings (Singapore) Pte. Ltd. sold 49.6 million Alphaland shares worth P942.55 million to Credit Suisse (Singapore) Ltd.
Hence, Alphaland management told the Philippine Stock Exchange (PSE) that the share sale allowed the property firm to comply with the 10-percent minimum public float requirement.
“Obstensibly and for its own selfish purposes, Ashmore Group simulated the sale and misrepresented the same to Alphaland in order to ensure that Alphaland remains listed with the PSE,†the firm said, adding that Ashmore Group still owns the 49.6 million shares.
On Dec. 31, 2012, the PSE suspended the trading of shares of listed firms that are non-compliant with the 10-percent public float rule. Following a six-month grace period, state-led Philippine National Oil Co.-Exploration Corp. became the first company to be removed from the PSE’s official registry for continued non-compliance.
“Alphaland is aware that as a result, it may no longer be deemed compliant with the 10-percent minimum public ownership requirement,†said Alphaland, which yesterday implemented a voluntary trading suspension.
In the same disclosure, Alphaland said SMC was one of the interested firms in buying out the Ashmore Group.
Ashmore Group said in a letter to SMC dated June 6, 2013 that subsidiaries Masrickstar Corp. and Alphaland Singapore own a combined 1.376 billion shares or 69.4 percent of Alphaland, including the 49.6 million shares reportedly sold to Credit Suisse.
Ashmore Group claimed it still owns the economic interest for the 49.6 million shares as the Credit Suisse purchase was funded by the London-based firm.
It also said it is willing to sell the 1.376 billion shares or 69.4 percent of Alphaland to SMC for $400 million.
Aside from SMC, the group of Sheik Suroor Bin Mohammed Al Nahyan, developer of the luxurious Etjhad Towers and Abu Dhabi Trade Center, was earlier reportedly interested in buying out the Ashmore Group in Alphaland.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between Ashmore Group and RVO Capital Ventures of former Trade minister Roberto V. Ongpin.
The board of Ashmore Group, which is looking to exit the local property business, reportedly did not agree to some corporate actions of Alphaland. The private equity firm earlier sought for Ongpin to leave the listed property company.
Ongpin was instrumental in orchestrating the deal that allowed Ashmore Group to buy Saudi Aramco’s 40-percent stake in the country’s largest oil refiner Petron Corp. for $550 million in March 2008.