The Yuchengco family’s holding company, House of Investments (HI), continues to divest from former subsidiary EEI Corporation, this time with the sale of a 4.5 percent stake to a Singaporean firm.
In a disclosure to the Philippine Stock Exchange (PSE), HI said it has sold 4.5 percent of EEI to Shenton Resources Pte Ltd. in line with the its portfolio realignment activities.
This leaves HI with a stake of about 30.85 percent of EEI as it comes after the heels of two previous divestment.
HI did not disclose the price for the transaction but it had sold a 14.35 percent stake in EEI last May 2023 Industry Holdings and Development Corporation (IHDC) for P1.08 billion.
HI disclosed then that its Board of Directors has approved a plan to sell 148.66 million common EEI shares to IHDC at the book value of P7.2348 per share. No agreement has been signed yet.
IHDC is owned by the Chua Group, headed by Francis Chua, a successful construction engineer with established business interests in construction supply including pre-cast concrete structures, cement and aggregates, as well as investments in the logistics and real estate sectors.
“IHDC’s entry as a strategic partner is deemed beneficial to EEI’s growth plans and restructuring efforts,” said HI noting that it will have a partner that will improve the performance of EEI.
The sale to IHDC had reduced HI’s interest in EEI to 35.35 percent as it came in the heels of the sale of 20 percent of EEI to RYM Business Management Corporation of House Speaker Martin Romualdez.
RYM acquired the 20 percent stake in EEI from HI for P1.25 billion consisting of 207.26 million EEI shares at P6.0312 per share.
HI said it decided to allow the entry of RYM into EEI because “The opportunities in the construction sector can be best explored with a strategic partner” and the cash raised will allow it to “reduce exposure to increasing interest rates by using the proceeds to reduce the loans.”
The RYM acquisition was paid in cash and the purchase price represented a 15 percent discount to the book value of EEI.