MANILA—Philippine Realty and Holdings Corp (Philrealty) has relinquished control of its insurance subsidiary to a group of private investors.
In a disclosure to the Philippine Stock Exchange, Philrealty said it inked a deal for the sale of its 70 percent stake in Meridian Assurance Corp for P191 million.
The transaction, which covers the sale of 1.75 million shares at P109.14 apiece, is subject to approval by the Insurance Commission.
A regulatory filing show Philrealty owns 86.66 percent of Meridian, a medium-sized non-life insurance company, underwriting fire, marine, and casualty and surety undertakings including miscellaneous lines of insurance.
Aside from its head office in Pasig, Merdian maintains offices in the key cities of Cebu and Davao.
The insurance firm's net underwriting income fell to P17.12 million in the first six months of last year from P17.81 million in the same period in 2012 due to lesser bookings. Philrealty took over Meridian in August 1994 from the Lozano-Ramirez group.
In March, Philrealty inked a deal with its major shareholder Greenhills Properties for the development of a 6,400-square meter lot in Bonifacio Global City. Total project cost will reach P5 billion.
Philrealty had said it would break ground on the project by middle of the year at the earliest to convert the land into a prime mixed-use development that will feature retail, residential, office, serviced apartments, and a hotel.
Philrealty is the company behind the Philippine Stock Exchange Center and the Alexandra mid-rise luxury condominiums in Ortigas Center, Pasig City. It is building the Andrea North condominium development in New Manila, Quezon City.
Two years ago, the Quezon City Regional Trial Court denied the petition of Philrealty to exit from rehabilitation.
Philrealty stopped payments of its liabilities at the height of the Asian financial crisis of the late 1990s.
source: interaksyon.com