THE PROPERTY ARM of businessman Dennis A. Uy looks to complete the acquisition of Philippine H2O Ventures Corp. (H2O) worth P647.86 million by April.
In a disclosure to the stock exchange on Thursday, H2O’s parent, Jolliville Holdings Corp. (JOH), said the closing date for its transaction with Udenna Development Corp. (Udevco) will be on April 6, but may be extended to no later than June 30 of this year.
The deal involves the sale of JOH’s shares in H2O, or 150.82 million common shares equivalent to 62.006% of the outstanding stock of H2O, priced at P327.75 million. Udevco will be buying out KGT Ventures, Inc., Melan Properties Corp., NGTO Resources Corp., OTY Development Corp., Nanette T. Ongcarranceja, Ortrud T. Yao, Kenrick G. Ting, Jolly L. Ting, and Lourdes G. Ting for the deal.
Udevco will also acquire 62.006% of the remaining cash assets of H2O, valued at around P320.11 million.
In line with the transaction, H2O has already started spinning off its water business, handled by its subsidiary Calapan Waterworks Corp. (CWWC). The company announced later in February that its board of directors has approved the sale of its shares in CWWC to Tabuk Water Corp. (Tabuk) for P442 million.
Udevco will then conduct a tender offer for minority shareholders of H2O, in order to take over the remaining shares in the company.
Once the transaction is complete, Udevco will be required to change H2O’s articles of incorporation and principal office address, as well as to seek the Securities and Exchange Commission’s approval to change its corporate name, effectively dropping the term H2O.
Udevco’s purchase of H2O is seen as a move for potential backdoor listing, after its officials earlier stated that it plans to list Mr. Uy’s property business within the year.
Udevco currently operates Lapu-Lapu Land Corp., a Cebu-based firm undertaking the development of the $341-million Lapu-Lapu Leisure Mactan project. The 12.5-hectare property will house a casino, retail complex, and hotels. The company looks to start the casino’s operations as early as 2019, ahead of the development’s target completion in 2022.
Shares in JOH were flat at P5.13 apiece, while shares in H2O lost 10 centavos or 1.57% to P6.25 each at the stock exchange on Thursday. — Arra B. Francia
