Aboitiz unit seals P1.2-B purchase of Batangas ecozone

MANILA, Philippines - The property arm of conglomerate Aboitiz Equity Ventures Inc. (AEV) has sealed its P1.3-billion purchase of a majority stake in a Batangas-based industrial park developer.

The acquisition jumpstarts Aboitiz Land Inc.’s expansion outside the Visayas while seller Alcantara Group will focus on power generation projects, the companies told the local bourse.

“AboitizLand signed [on Thursday] the share purchase agreement with Alsons Land Corp. (ALC) for the acquisition of ALC’s 60-percent interest in Lima Land Inc. for a purchase price of P1.36 billion,” the property firm said.

The purchase includes Lima Land’s wholly-owned subsidiaries Lima Utilities Corp. and Lima Water Corp., AboitizLand said. The remaining 40 percent of Lima Land is owned by Marubeni Corp. of Japan.

Lima Land is the company behind the Philippine Economic Zone
Authority-registered Lima Technology Center (LTC), a 485-hectare business park located in Lipa and Malvar towns in Batangas province.

Locators in Lima Technology Center are involved in various
manufacturing ventures like automobile components, motorcycles, printers and plastic moldings. It currently hosts 37 locators that enjoy tax perks and employ more than 24,000 employees.

“The buyout is expected to close no later than 30 days after the
execution of the share purchase agreement,” AboitizLand said.

The acquisition is in line with AboitizLand’s plan of becoming a major income contributor to the Aboitiz conglomerate, which is predominantly into power generation and distribution.

In its 20-year history, AboitizLand has been in the industrial segment through the Mactan Economic Zone II in Lapu-lapu City and the West Cebu Industrial Park of subsidiary Cebu Industrial Park Developers Inc.

For its part, ALC’s parent firm Alsons Consolidated Resources Inc.
(ACR) said it will focus on power projects.

“ALC’s divestment from Lima Land is in keeping with ACR’s decision to make power generation in Mindanao and other key areas of the Philippines the core focus of its business,” ACR said.

“Both ACR and AEV are confident that this agreement is in the best interests of the LTC’s locators, employees and the host cities of Lipa and Malvar,” ACR said.

The Alcantara family’s ACR, through subsidiary Sarangani Energy Corp., is putting up two 105-megawatt (MW) coal-fired power plants, of which the first 105 MW unit will be under a partnership with Japan’s Toyota Tsusho Corp.

It is also in the advanced stages of development for the 105-MW San Ramon Power Inc. coal power plant in Zamboanga City.

To date, ACR operates power generation facilities run by its
subsidiaries, including Southern Philippines Power Corp.’s 55-MW plant in Alabel, Sarangani; the 100-MW Western Mindanao Power Corp. plant in Zamboanga City; and the newly revamped Mapalad Power Corp. plant in Iligan City that began operating in the first semester.