Philippine Infradev Holdings, Inc. announced that its wholly-owned subsidiary Makati City Subway, Inc. has executed a legally binding Term Sheet with Richer Today, Inc. (RTI) for a new joint venture.
In a disclosure to the Philippine Stock Exchange, the firm said the Term Sheet provides that MCSI and RTI will form an unincorporated joint venture for, among others, the financing and acquisition of lots in and around Station 5 of the Makati City Subway Project.
Station 5 has been identified as the main construction site where the tunnel boring machines will be assembled and lowered.
The first batch of engineers from China State Engineering Second Bureau Ltd., the EPC Contractor engaged by MCSI, recently arrived from China and are currently finalizing the construction plan for Station 5.
To ensure the timely availability of the required lands, RTI obligated itself under the Term Sheet to release at least P775.89 million within 120 days from signing of the Term Sheet, with at least P234.73 million to be released within 10 business days.
MeanwhilePhilippine Infradev reported the termination of the planned investment of Hong Kong Binjiang Industrial Limited in MCSI and the Transport Oriented Development (TOD) Agreement between MCSI and HK Binjiang.
“The Company wishes to announce that it has agreed to the mutual termination of the Share Purchase Agreement executed with HK Binjiang on February 18, 2020,” Philippine Infradev said.
The firm noted that, “It has been almost 1 year since the transactions contemplated in the Agreement were submitted to the Philippine Competition Commission for approval, and to date, the same are still pending review.”
The effectivity of the transactions contemplated in the Agreement, specifically the release of funds earmarked by HK Binjiang, were conditioned on the PCC’s approval of the transactions.
The termination of the Agreement likewise results in the termination of the Shareholders’ Agreement and Transit Oriented Development Agreement executed with HK Binjiang.