MANILA, Philippines — Tycoon Helen Yuchengco-Dee continues to restructure the Yuchengco Group’s listed construction company EEI Corp. by bringing in a new strategic partner, the Chua Group.
In a disclosure yesterday, Yuchengco-led House of Investments (HI) said its board of directors agreed to sell 148.6 million common shares, representing 14.346 percent of the outstanding common shares of EEI Corp. to Industry Holdings and Development Corp. (IHDC) for P1 billion. No agreement has been signed yet.
IHDC is owned by the Chua Group, headed by Francis Chua, a construction engineer with established business interests in construction supply including pre-cast concrete structures, cement and aggregates, as well as investments in the logistics and real estate sectors.
“IHDC’s entry as a strategic partner is in line with EEI’s growth,” HI said in its disclosure.
Early this month, HI sold its 20 percent stake in EEI to the Romualdez-led RYM Business Management Corp. for about P1.25 billion.
As a result of the block sale, the Yuchengco-led firm’s stake in EEI was reduced to 35.3 percent from 55.4 percent previously.
The deal serves as an opportunity to explore the construction sector with a strategic partner and to “reduce exposure to increasing interest rates by using the proceeds to reduce the loans,” according to HI.
Following this, EEI appointed Lorenzo Tan, chairman of the listed construction and engineering services company, succeeding Dee who stepped down for personal reasons.
EEI also disclosed yesterday that that it would invest in P1 billion preferred shares in ATYC Inc., a wholly owned subsidiary of HI which owns the A.T. Yuchengco Centre in Bonifacio Global City.
The additional investment of P1 billion in exchange for 10 million preferred shares, will be used to reduce the loans in ATYC.
“This will reduce interest payment and exposure to market risk,” HI said.