Ongpin’s Alphaland, Ashmore end dispute

MANILA, Philippines - Upscale property developer Alphaland Corp. is ending its dispute with erstwhile partner, the London-based private equity fund Ashmore Investment Management Ltd.

In a statement, the property firm controlled by the group led by former Trade Minister Roberto V. Ongpin, said it is unloading several assets that include an office tower and a marina club project in favor of Ashmore.

Alphaland said it signed a definitive agreement with shareholders Alphaland Holdings (Singapore) Pte. Ltd. and Masrickstar Corp., which are both units of Ashmore.

The property firm will transfer shareholders and interests in several projects to a newly-incorporated company of Alphaland Holdings and Masrickstar.

In particular, it will assign to Ashmore’s units 100 percent of Alphaland Makati Tower Inc., owner of The Alphaland Tower in Makati, and 100 percent of Alphaland Marina Club Inc. and Alphaland Marina Corp., which is currently developing the P2-billion Alphaland Marina & Country Club project along Manila Bay.

Alphaland said it will also unload its 50-percent stake in Alphaland Bay City Corp., the joint venture company formed by the Alphaland Group and the Wenceslao Group to develop the 32-hectare Alphaland Bay City project at the Aseana Business Park in Parañaque; and 60-percent interest in the Boracay Gateway project, a joint venture between Alphaland and Akean Resorts Corp. for a 500-hectare land in Caticlan.

In return, Alphaland Holdings and Masrickstar will transfer their shares in Alphaland to Ongpin’s Group.

“Alphaland Holdings and Masrickstar will also pay the company P2.5 billion in cash in two tranches,” Alphaland said.

“Among the assets that will remain with the company are Alphaland Southgate Tower and Mall, Alphaland Makati Place including the City Club, Alphaland Balesin Island Club and Alphaland Baguio Mountain Lodge Homes,” it added.

Alphaland, which is into high-end leisure developments, is a joint venture between the Ashmore Group and Ongpin’s 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. 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. Ashmore Group was also involved in telecommunications (ISM Communications), oil exploration (Philex Petroleum Corp.) and water (Maynilad Water Services).

Despite facing a delisting process, Alphaland raised almost P300 million from the sale of 109 million new common shares to private foreign investors early this year to comply with the minimum public ownership requirement.

“The subscriptions have resulted in a cash inflow of more than P272 million to the company, which it sorely needs in order to maintain operations,” the property firm earlier said.

In March, the Philippine Stock Exchange (PSE) announced that it initiated the delisting process for Alphaland as a maximum penalty for violating disclosure requirements. Delisting is the maximum penalty imposed that can be imposed by the PSE on an erring company.

The PSE earlier said the violations were committed in the course of the disclosure of the alleged simulated sale of Alphaland shares between Ashmore Investment Management Ltd./Alphaland Holdings and Credit Suisse (Singapore) Ltd; cases involving the company and its state of financial distress; and its representation of its conduct of a stock rights offering which it later admitted as a minority offering.