KEPPEL Philippines Holdings, Inc. (KPH) has decided to sell its interest in a property located in Batangas to a buyer, following an 18-year legal dispute with the state-run Philippine National Oil Co. (PNOC) involving the firm’s qualifications to own land in the Philippines.
“Considering the case has been ongoing for the past 18 years (since 2003), KPH decided to monetize its interest,” the listed firm said in a disclosure on Tuesday.
In 1976, KPH entered into a 25-year lease agreement with Luzon Stevedoring Corp. (Lusteveco) for 11 hectares in Bauan, Batangas. At the end of the agreement, it had the option to buy the land for P4.09 million as long as it had the qualifications to own land under Philippine laws.
When the lease agreement was exercised, less than 60% of KPH’s shareholding was owned by Filipinos, which meant that the firm was not eligible to buy private lands in the country.
PNOC soon acquired the land from Lusteveco and took over the rights and obligations under the agreement, which KPH did not object to.
In 2003, KPH filed a “complaint for specific performance” against PNOC with the Regional Trial Court in Batangas for not allowing it to buy the land in Bauan, since the company was already 60% owned by Filipinos as of 2000.
KPH filed several motions with the court, including one in 2019 against PNOC Renewable Corp. since the property was subsequently transferred to the latter.
“On 2 June 2021, KPH signed agreements selling its interest. As a condition of the sale, necessary motions for substitution as party in said case were made to replace KPH as a party. On 7 June 2021, KPH received a copy of the buyer’s entry of appearance,” it added.
KPH clarified that the case is still ongoing, following the recent filing of the motion for substitution.
Shares in KPH at the local bourse remained unchanged at P4.31 apiece since May 4. — Angelica Y. Yang
