Acesite executive vice president Francis Lam told the Philippine Stock Exchange that the deal was completed last Jan. 30, wherein Sino-i.com purchased 100 percent of the issued capital of South Port Development Ltd. for HK$190 million (about P1.5 billion).
South Port, based in the British Virgin Islands, holds 100-percent equity in the similarly Virgin Islands firm Acesite Ltd., which in turn owns 75 percent of the outstanding share of Acesite Philippines.
Lam said the purchase price (about P19.79 per share, based on an exchange rate of P7.80 to HK$1) represents a premium of 214 percent over Acesite’s last traded price f P6.30 per share.
He said even with the change in ownership control, no major changes are expected with respect to the hotel’s operations, as Sino-i.com has indicated that it shall continue with the proposed renovation program for the hotel to include improvements in safety and security features, upgrading of machinery and equipment, and refurbishment of facilities.
Although there are no new loans or pledges (aside from the existing loans from Equitable PCI Bank and the Industrial Commercial Bank of China) have been obtained by Sino-i.com to fund the acquisition, the new owners have pledged the controlling stake in Acesite to Equitable which will then have the right to foreclose on these shares.
In the meantime, Sino-i.com will negotiate for an extension, rollover, restructuring or refinancing of a $15-million loan from the ICB. "Once secured, the new arrangements pertaining to the loan shall ensure the stability of the financial liquidity of the corporation," Lam said. – Conrado Diaz Jr.