ROXAS AND CO., Inc. (RCI) plans to carry on its strategy of selling non-essential assets and further reduce its debt this year.
In a regulatory filing on Thursday, the company said it was pursuing major sale and joint venture deals with its land holdings, and would also focus on improving its core businesses this year. It did not disclose details of the said sale and venture deals.
“Over the past two years, the Roxas Group sold raw land to major property developers, Sta. Lucia Land, Inc. and SM Prime Holdings, Inc. as part of its strategy to deleverage and enhance the value of its Nasugbu, Batangas landbank,” the disclosure said.
For 2020, the company and its subsidiaries sold some non-performing assets to reduce its overall debt, such as its land and building in Cubao worth P367 million, and raw land in Batangas to the National Grid Corporation of the Philippines for the Calaca-Nasugbu transmission line project worth P49.82 million. Both figures are exclusive of value-added tax.
The company also signed a put option agreement for the maximum commitment of P800 million as a fund raising option, and restructured existing loans amounting to P2.9 billion to have working capital needed to maintain and grow its operations.
Meanwhile, RCI said its Go Hotels hospitality ventures in Metro Manila remain as quarantine facilities, while the company’s Anya Resort in Tagaytay continue to be an off-city relaxation and staycation option despite travel restrictions due to the ongoing pandemic.
“RCI’s coconut processing subsidiary, Roxas-Sigma Agriventures, Inc., achieved double digit revenue growth for the third straight year and is providing high-quality products for export, while at the same time, uplifting local farmers and its supply chain partners,” the company said.
On Thursday, RCI shares at the stock exchange rose 3.51% or four centavos to close at P1.18 apiece. — Revin Mikhael D. Ochave