GREENERGY Holdings, Inc. has terminated its memorandum of agreement (MoA) with a Korean group that was supposed to develop for the listed company a number of ventures, including a transport hub and “smart” property projects.
The holding firm, led by businessman Antonio L. Tiu, told the stock exchange that the MoA was off because of the failure of TheBizlink Co. Ltd. and its local unit TheBizlink Philippines, Inc. to comply with its obligation within the prescribed period.
Greenergy said it had received a letter from the TheBizlink group saying that it was “still in the process of negotiating with several financial companies and investors for the initial investment in the project contemplated” in the MoA dated Jan. 30, 2019.
Greenergy said TheBizlink was also requesting for “additional period of time to conduct its due diligence.”
In reply, Greenergy sent a letter expressing its gratitude and appreciation for the support, but has decided to terminate the agreement.
Under the MoA, TheBizlink group was supposed to develop a transport hub, smart-farming agriculture area, smart-city commercial and/or mixed-use developments and other related developments.
Within 90 days from the execution of the agreement, TheBizlink was to provide Greenergy a funding facility in the initial amount $350 million provided that the legal, financial and technical due diligence on the project to be conducted by the group does not result in any material adverse findings involving the project.
On Monday, shares in Greenergy fell by 7.75% to close at P2.38 each. — Victor V. Saulon
