MASS HOUSING developer 8990 Holdings, Inc. said it has signed a deal to acquire a 72.83% stake in Genvi Development Corp., the company behind the integrated community Monterrazas de Cebu in Cebu City.
In a disclosure to the stock exchange on Tuesday, the listed firm said its subsidiary 8990 Housing Development Corp. (8990 HDC) inked a subscription agreement for 2,913,128 common shares out of the existing but unissued capital of Genvi at P100 each or a total of P219.31 million.
Once the deal is completed, 8990 HDC will own around 72.83% of Genvi’s total issued and outstanding capital stock. The rest will remain with Genvi’s current shareholders.
“The subscription transaction is intended to be the first phase of the Genvi acquisition. 8990 HDC hopes to consolidate its ownership of Genvi by acquiring the remaining 27.17% of the resulting issued and outstanding capital stock of Genvi following completion of continuing discussions with the current shareholders of Genvi and confirmation of due diligence findings,” the company said.
8990 Holdings said the additional acquisition will be done through a separate deal between 8990 HDC and Genvi shareholders for around P800 million.
“The parties expect to complete such share purchase transactions sometime in the second quarter of the year. After the completion of the Genvi acquisition, 8990 HDC is expected to own 100% of the total issued and outstanding capital stock of Genvi,” the mass housing developer said.
Genvi is the developer of Monterrazas de Cebu, a 200-hectare integrated community with residential, commercial and institutional areas. The first phase of the project includes high-end residential project The Peaks.
“With the acquisition of Genvi, the development by the 8990 Group of upscale subdivisions and high-end residential communities will definitely continue. Furthermore, this firms up the intention of 8990 Holdings to expand into other real estate segments that have proven to have strong demand in the past years,” the company said.
Since its establishment, 8990 Holdings has specialized in housing projects for the affordable market. Its largest project to date, Urban Deca Homes Tondo, offers houses priced from P1.4 million to P2 million.