MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved Yuchengco-led House of Investments’ move to acquire GPL Holdings Inc.’s (GPLH) shares in Grepa Realty Holdings Corp.
As earlier disclosed, House of Investments would acquire 100 percent of GPLH’s outstanding shareholdings in Grepa Realty for P1.7 billion as part of its move to diversify into the property sector. The acquisition will be made through a share swap agreement wherein GPLH will receive 7.24 House of Investments shares for each Grepa Realty share.
The SEC has given its green light to the acquisition, in sync with the Yuchengco Group’s reorganization efforts to further unlock values from the group’s different businesses.
“The reorganization exercise will seek to unlock values from the Yuchengco Group of Companies through House of Investments: in fulfillment of Ambassador Alfonso Yuchengco’s ‘Womb-to-Tomb’ dream from the ‘90s via consolidation of significant verticals in non-banking financial services and real estate,” House of Investments disclosed.
The main asset of Grepa Realty is the Grepalife Building which stands on a 5,000-square meter land along Sen. Gil J. Puyat Avenue in Makati and will add to the property portfolio of the House of Investments which includes A.T. Yuchengco Centre, RCBC Plaza, and the upcoming The Yuchengco Centre.
Grepa Realty also owns properties in Cebu, Antipolo, Tacloban, and Manila. It also owns a lot in Carmelray in Calamba which is an industrial park classified as a special economic zone by PEZA.
GPLH will receive 73.4 million House of Investments shares for 10.1 million Grepa Realty shares.
Following the approval of the SEC, House of Investments will also apply for a letter of non-coverage from the Philippine Competition Commission, the country’s anti-trust body.
House of Investments is betting bigger on property, as part of its vision to tap into the growth potential of the Philippine real estate market.
It also formed a new wholly owned property subsidiary, Tarlac Terra Ventures Inc. following a P15.7-billion share swap agreement and acquisition of a 184-hectare lot in Tarlac.
House of Investments director, president and CEO Lorenzo Tan said the company’s overall objective is to become a better conglomerate.
On Monday, House of Investments disclosed that it was making financial services a new core business to replace construction after reducing its stake in construction company EEI Corp.