MANILA, Philippines - The group of businessman and former Trade Minister Roberto V. Ongpin has secured majority ownership in upscale property developer Alphaland Corp. after a P2.89-billion capital call that was ignored by its London-based partner.
In a disclosure, Alphaland said Ongpin and his associates now own 50.57 percent of the company, which posted a record profit of P6.5 billion last year.
“This followed a capital call, on which the Ashmore Group, Alphaland’s erstwhile single largest majority shareholder, defaulted,†the property firm said.
Alphaland early this month requested a capital infusion from all stockholders. Alphaland sold 1.157 billion shares at P2.50 each for a total value of P2.89 billion.
Alphaland said Ashmore Group failed to meet the payment deadline on Jan 15., resulting in the dilution of the shares of the private equity fund.
“Ashmore Group’s response was to apply with the Makati Regional Trial Court for an ex parte temporary restraining order to stop the implementation of the capital call. However, Ashmore Group’s application was denied,†Alphaland said.
The Ongpin Group now owns 50.57 percent of Alphaland’s outstanding shares and 13 board seats, while Ashmore Group controls 24.41 percent and two board seats, including the 2.5 percent block that Ashmore Group had earlier misrepresented as having been sold.
Prior to the transaction, the Ongpin Group owned 21.73 percent of Alphaland while Ashmore Group controlled 69.37 percent.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between Ashmore Group and RVO Capital Ventures.
The board of Ashmore Group, which is looking to exit the local property business, reportedly did not agree to some corporate actions of Alphaland and refused to fund property development projects. The private equity firm earlier sought for Ongpin to leave the listed property company.
“While negotiations continue between Alphaland and Ashmore Group to find a way out of the impasse, nothing definite has been agreed on,†Alphaland said.
Despite the disagreements, Alphaland said it remained profitable, with profits surging to P6.5 billion last year from P2.02 billion in 2012.