Razon acquires 75% of Active Alliance

MANILA, Philippines - Port magnate Enrique K. Razon is taking over listed firm Active Alliance Inc. (AAI), which is rumored to be the backdoor listing ticket of his gaming company Bloomsbury Investments, in a deal valued at P200 million.

In a disclosure to the Philippine Stock Exchange yesterday, AAI-owned by Bienvenido Tan III, son of former BIR Commissioner Bienvenido Tan Jr. – said five of its stockholders, including Wespac Holdings Inc., agreed to sell to Razon’s Prime Metroline Transit Corp. 60 million of its shares, constituting 75 percent of AAI.

The shares will be sold at P3.33 each.

Shares of AAI have zoomed to record highs in less than two weeks. From only P4.91 on Nov. 8, AAI’s share price shot up to as much as P102.80 on rumors of an impending takeover by Razon’s group. Prior to its request for a one week-trading suspension beginning Nov. 22, AAI closed at P76 each share Monday.

According to AAI, the deal is subject    to conditions such as the completion of due diligence and the compliance with (or exemption from) the mandatory tender offer.

AAI, which has a market capitalization of P6.08 billion, requested for a five-day voluntary trading suspension on Tuesday.

Razon’s Bloomsbury is building a $1-billion integrated casino complex in the Entertainment City along Manila Bay. It is speeding up the construction of the project with the first phase (consisting of the hotel and casino) seen up and running by October 2012.

The project, covering an area of 8.3 hectares, features a five-star hotel, casino and gaming facilities, state-of-the-art meeting and convention venues, high-end retail and fine dining outlets, and health and wellness facilities. Retail, dining and entertainment areas are being expanded to complement the complex’s offering of a first-class resort experience.

Bloomsbury is one of four groups issued licenses to develop 120 hectares of prime reclaimed land along Roxas Blvd. in line with the Philippine Amusement and Gaming Corp.’s goal to catapult the Philippines as one of the premier tourist destinations in the region and the world, and boost the country’s gaming revenue, currently at about $800 million per year.

AAI is engaged in the manufacture of electronic devices, specifically the assembly of printed circuit boards, which are the backbones of electronic devices. It operates within the Subic Bay Freeport Zone.

In 2003, the company decided to temporarily suspend its electronic manufacturing operations due to uncertainties in the electronics industry. Two years later, its majority shareholders entered into an agreement with Wespac Holdings Inc. for the sale of 67.82 million AAI shares for P130.89 million.