In a joint statement issued yesterday, Belle and Abacus said they have already paid 30 percent of the agreed purchase price and will settle the balance in equal quarterly installments over a two-year period.
With the acquisition of Kuok’s shares, the total shareholdings of Belle in Pacific Online will increase from 35 percent to 43 percent while Abacus Gaming will have it stake in Kuok raised to 37 percent from 30 percent.
Pacific Online leases equipment for the lotto operations of the government’s Philippine Charity Sweepstakes Office in the Visayas and Mindanao region.
Abacus Gaming was formerly known as Piedra Negra Mining Corp., a company engaged in coal production. On November 10, 1989, the firm changed its name to Abacus Consolidated Resources & Holdings Inc. and subsequently changed its primary purpose to that of a holding company.
Kuok’s divestment of its interest in Pacific Online is part of measures adopted by the company to pay off debts.
It also intends to sell its shareholdings and other interests in KPPI Land Corp., a joint venture with Pelangi Berhad, a Malaysian-listed company engaged in property development business. KPPI Land is currently developing about 1,051 hectares of land in the towns of Silang and Carmona in Cavite.
Kuok said a successful sale of KPPI Land could result in the elimination of all liabilities and could leave the company with enough funds to carry itself through difficult times.
As of end-2000, Kuok still has over P2.5 billion of interest-bearing liabilities to deal with, although this was vastly improved from P4.8 billion due to a number of investments disposed of including its 23.5 percent stake in KSA Realty Corp. (the owner of the Enterprise Center building) and its 26 percent interest in EDSA Properties Holdings. – Zinnia B. Dela Peña