Corporate News

8990 Holdings owners buy into Primex

Posted on October 11, 2016

MAJOR SHAREHOLDERS in mass housing developer 8990 Holdings, Inc. have bought into property firm Primex Corp. in a P180-million deal.

In a disclosure to the Philippine Stock Exchange on Monday, Primex announced its acceptance of a private placement from 8990 Holdings Chairman Emeritus Luis N. Yu, Chairman Mariano D. Martinez and President and Chief Executive Officer Januario Jesus Gregorio B. Atencio III.

The three 8990 Holdings shareholders each acquired 15 million common shares in Primex. Messrs. Martinez and Atencio signed the private placement agreement on behalf of Kwantlen Development Corp. and Januarius Holdings Corp., respectively.

Messrs. Yu, Martinez and Atencio acquired the common shares for P4 apiece. Shares in Primex closed 16 centavos or 4.07% higher at P4.09 apiece on the local bourse on Friday.

The private placement represents 2.78% of the 1,616,666,665 outstanding and issued shares of Primex, which earlier presented plans to double its earnings this year and accumulate capital to expand its project portfolio.

In the first six months, Primex booked a 282% year-on-year spike in net income to P31.7 million from P8.3 million, following a 279% surge in revenues to P94.8 million from P25 million. The company posted P1.7 million in profit and P19 million in revenues in 2015.

The listed company is banking on Primex Realty Corp., which it acquired in March 2015. Primex Realty is the owner and developer of the 31-storey condominium The Stratosphere, located in the Makati central business district.

In late July, Primex had disclosed its intention to forge joint ventures and strategic partnerships as well as undertake capital enhancement activities such as follow-on offerings to support its business expansion.

Incorporated in 1986, Primex engages in raw land acquisition, development, marketing and leasing, among others. It holds a land bank of prime properties in Makati, Greenhills in San Juan, Quezon City, Tagaytay, Antipolo, Malabon and Bulacan.

The Primex group also has a joint venture project called Xiamen World Trade Center, a mixed-use development within a two-hectare property in China. -- Keith Richard D. Mariano