MAILBOX: POPI clarifies Tutuban issue

Dear Mr. Agustin;

We write regarding your article entitled “Ayala goes shopping in Divisoria, ends up buying Tutuban mall”, under the Money-Go-Round column published on Oct. 16 in The Philippine STAR. In the spirit of fair, balanced, and accurate reporting, allow us to raise certain points in the said article that require clarification to avoid undue confusion to the public.

First, you wrote and we quote “This coming Tuesday (Oct. 20), Ayala Land will formally take majority control of the 22-hectare Tutuban Center....”. As disclosed to the public, the Special Stockholders’ Meeting at the Makati Shangri-La on Tuesday is primarily to present to our stockholders for consideration and approval (a) the increase in Prime Orion Philippines, Inc.’s (POPI) authorized capital stock from P2.4 Billion to P7.5 Billion, and (b) the Subscription by Ayala Land, lnc. (ALI) to 2.5 Billion POPI shares of stock (out of the said increase).  We wish to make it clear that while that matter is for consideration and approval, ALI’s due diligence in relation to their entry to POPI is still ongoing and the finalization of the deal remains subject to meeting certain terms and conditions.

Secondly, you specifically mentioned POPI as a “cash-strapped developer”. Allow us to state that our company is 100 percent debt-free and, as also disclosed, our company’s liquid position (cash, cash equivalents and AFS & FVPL financial assets) stands at P1.69 billion as of June 30.

Thank you very much.

Very truly yours,

Victor V. Rafael