Chemical Industries of the Philippines [CIP 184.50 50.0%; 1148% avgVol] [link] shares surged 50% and were capped by the price ceiling after the company provided comprehensive disclosure of its P1.726 billion acquisition of Tierra Ariana Eco Land Inc (TAELI).
According to CIP’s disclosure, the acquisition of TAELI gives it “indirect control over the BPI Paseo de Roxas Condominium Corporation”, which is the company that manages the Filinvest Financial Center Condominium Project and the company that has the “authority” to develop the project.
While the building itself has been “completely demolished”, the deal gives CIP a 95% interest in that BPI Paseo de Roxas Condominium Corporation, and CIP’s goal is to acquire indirect ownership of the entire parcel to “redevelop the Condominium Project through the Condominium Corporation”.
MB BOTTOM-LINE
The actual transaction is a complicated series of purchases, debt assumptions, and assignments to gain control over the ability to redevelop this plot of land. The comprehensive disclosure document is an interesting read for people who might want to see how a moderately-exotic corporation transaction might look like under the hood. Anything on Paseo de Roxas is a big deal, and the size of this transaction is actually 30% larger than CIP’s entire marketcap, so it’s a pretty big deal for the company as well.
--