PCC approves ALI joint venture and another hydro JV

Published February 22, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

The Philippine Competition Commission (PCC) has approved two joint venture transactions, one between Ayala Land, Inc. and Royal Asia Land, Inc., and another between Markham Resources Corporation and Alternergy Mini-Hydro Holdings Corporation.

In a statement, the PCC said its Mergers and Acquisitions Office (MAO) found that both transactions do not result in substantial lessening of competition in their respective relevant markets.

ALI and Royal Asia are setting up a joint venture to acquire, own, and develop a 936-hectare mixed-use project with commercial and residential components in Silang and Carmona, Cavite.

Royal Asia Land, whose ultimate parent entity is PCO South Frontier Holdings, Inc., was incorporated to purchase, acquire, own, lease, sell, and convey real properties.

Both firms intend to subscribe to shares of the joint venture company, with each party owning 50 percent of the outstanding stock of the JV company.

Royal Asia Land will receive consultation fee of 2 percent of the JV company’s gross revenue for its participation in the planning and development of the property, while Ayala Land will receive a development management fee of 12 percent and sales and marketing fee of 5 percent of the JV company’s gross revenues.

“The transaction does not result in the substantial lessening of competition because it will not have a structural effect on the market,” the PCC said on the Ayala Land-Royal Asia Land deal read.

On the other hand, Markham and Alternergy have proposed a joint venture investment in Kiangan Mini-Hydro Corporation, Ibulao Mini Hydro Corporation, and Lamut-Asipulo Mini-Hydro Corporation.

Collectively dubbed as the Markham-Alterenergy JV companies, they are Philippine special purpose companies formed to operate, develop, and maintain run-of-river mini-hydro projects along the stretch of the Asin, Ibulao, Hungduan, Lamut, and Panubtuban Rivers in the Ifugao province.