PHINMA Inc. is consolidating its real estate, hotel businesses and other investments worth a total of P2.84 billion into publicly-listed subsidiary PHINMA Corporation.
In a disclosure to the Philippine Stock Exchange, PHINMA Corp. (PC) said it will purchase common shares owned by its parent, PHINMA Inc. (PI), in the group’s operating companies.
“This will lead to the consolidation of the group’s strategic business units under PHINMA Corporation while providing a vehicle to expand these core and emerging businesses,” it explained.
The acquisition of the investments held by PHINMA Inc. would increase PHINMA Corporation’s ownership in the group’s education, property development, and hospitality businesses.
This would expand PHINMA Corporation’s exposure to these high-growth sectors, improve the conglomerate’s diversification, and provide a more streamlined avenue to leverage synergies across the group going forward.
Under the plan, PC will be 8.03 percent of PHINMA Education Holdings Inc., which owns a network of 10 schools, from PI for P1.06 billion to boost its stake to 75.21 percent.
PC will also acquire 36.71 percent of PHINMA Property Holdings Corporation from PI for P588.9 million to increase its equity to 86.26 percent and 63.47 percent of ABCIC Property Holdings for P409.4 million to raise its interest to P89.99 percent.
To enter the hospitality business, PC will acquire 63.77 percent of PHINMA Hospitality (management company of the group’s Microtel and TRYP hotels and part owner in 87 hotels) for P251.2 million and 51 percent of PHINMA Microtel Hotels Inc. (master franchisor or Microtel and TRYP hotels in the Philippines) for P21.2 million.
“Consolidating our investments into PHINMA will bolster the Group's robust growth trajectory and will allow us to make more lives better. PHINMA Corporation, as a listed company, is a platform that can be used to expand our businesses," said PHINMA Chairman and CEO Ramon R. del Rosario, Jr.
He added that, "As we continue to grow, PHINMA Corporation will capitalize on our distinctive advantages and our drive to provide the essentials of a dignified life for Filipinos.”
PC will also purchase real estate properties from PI amounting to P507.1 million. These consist of floors in the group’s office building, PHINMA Plaza located in Rockwell Center, Makati, which are used in the day-to-day operations of PHINMA Corporation and its subsidiaries.
PHINMA Corporation and PHINMA Inc. are targeting to complete the transaction within the year.