AboitizLand sells 50% stake in Cebu property developer

AboitizLand sells 50% stake in Cebu property developer

ABOITIZLAND, Inc., the property subsidiary of Aboitiz Equity Ventures, Inc. (AEV), is selling half of its ownership interest comprised of 435 million shares in Cebu Homegrown Development, Inc. for P609 million.

Shares owned by AboitizLand will be sold to Ixidor Holdings, Inc.

“The transaction is aligned with the Aboitiz group’s strategic direction for its residential real estate business of focusing on horizontal projects,” AEV disclosed to the exchange on Monday.

Cebu Homegrown Development is said to be a joint venture of AboitizLand with Visayas-Mindanao property developer Cebu Landmasters, Inc., which focuses on developing mixed-use vertical projects in Cebu.

The transaction comprises P430,000 for 43 million common shares priced at one centavo apiece, P379,965,833.04 for 387 million redeemable preferred shares without additional paid-in capital (APIC) sold at P0.98 each, and P228,604,166.96 for five million redeemable preferred shares APIC priced at P45.72 per share.

“The transaction is not material to the business, financial condition, and operations of AEV,” the listed holding firm said.

On Monday, shares of AEV at the stock exchange improved by 0.70% or P0.25 to close at P35.75 each. — Keren Concepcion G. Valmonte

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