MANILA, Philippines - Ayala Land Inc. is taking majority control of Tutuban Center operator Prime Orion Philippines Inc. (POPI) for P5.6 billion.
In a disclosure to the Philippine Stock Exchange, ALI said it forged an agreement to acquire 2.5 billion common shares or 51.36 percent of Prime Orion.
The closing of the deal is subject to certain terms and conditions.
“This acquisition is aligned with ALI’s thrust of expanding its leasing business,” Ayala Land said.
Prime Orion, for its part, said it would benefit from the expertise and resources of ALI and optimize the development of its property assets, especially the Tutuban Center.
The popular Tutuban Center is a retail complex in the shopping district of Divisoria in Tondo, Manila, with gross leasable area of about 60,000 square meters.
It offers various concepts from wholesale and bargain stalls, to regular retail and food outlets.
The shopping complex sits on a 20-hectare property, which will be the location of the North South Railway Project Transfer Station.
To facilitate the entry of ALI, Prime Orion raised its authorized capital stock to P7.5 billion from P2.4 billion. It also increased the number of its directors to nine from seven.
Prime Orion’s board shall call a special stockholders’ meeting to secure the approval of its stockholders on the proposed amendments to its articles of incorporation.