DMCI Holdings sells AG&P for P1.75B to Kuwaiti-led group

MANILA, Philippines - DMCI Holdings Inc., the listed investment holding firm of the Consunji family, has sold its unit Atlantic Gulf & Pacific Co. of Manila (AG&P) to a consortium of local and foreign investors for P1.75 billion.

The investors, led by Kuwaiti fund company KCIC, include a number of companies with extensive experience in the oil and gas industry and international finance.

In a disclosure to the Philippine Stock Exchange, DMCI said it sold 973.09 million shares it owns directly and 17 million shares beneficially owned, representing 98.19 percent of the outstanding capital of AG&P.

“We are very excited about our new ownership structure as it will allow us to further strengthen our already strong infrastructure and management team. We will become even better partners for our clients and other stakeholders,” said AG&P chief executive officer Lito Bermudo.

“We have planned for an aggressive investment schedule that will see us with state-of-the-art equipment and capabilities. With strong shareholder support and a robust market, we are exactly where we need to be,” he added.

KCIC is a Kuwait-based investment company, regulated by the Central Bank of Kuwait, and founded in 2005. It has a strong, diversified shareholder base through its listing on the Kuwait Stock Exchange.

The Kuwait Investment Authority – Kuwait’s sovereign wealth fund – is a founding shareholder, along with other key shareholders which include National Investment Co., one of the leading investment banks in the Middle East, and Al Ghanim Industries, one of the largest conglomerates in the Middle East.

KCIC aims to become a premier emerging Asia-focused investment company by facilitating and participating in capital flows between the Middle East and Asia.

DMCI has put AG&P, the country’s oldest construction company, on the auction block since early 2008.

AG&P is looking to post a net profit of P400 million this year. In the first half of 2010, the company contributed P330 million to DMCI’s total net earnings, more than triple the P92 million recorded a year ago.

Overseas manpower services, although slightly lower, continued to contribute significant revenues to AG&P.

AG&P engages in steel fabrication and modular construction. Its products include offshore, heavy steel framed, onshore modularized, process equipment/systems engineered, and marine structures; and pressure vessels and tanks, and pipes and plateworks.

Parent firm DMCI is primarily engaged in general construction, mining, power generation, water distribution and real estate development.