Ayala group taking over Bonifacio Land
By Rufi Vigilar
MANILA, Philippines (CNN) -- Metro Pacific, a unit of Hong Kong-listed First Pacific group, has relinquished control of Bonifacio Land Corporation (BLC), the developer of Manila's Fort Bonifacio Global City.
The Philippines' biggest property group, Ayala Land, has teamed up with the Campos family's Greenfield Development Corporation to sign a buy-out deal which covers a 50.4 percent stake in BLC.
The deal, expected to settle in January, was struck by Ayala Land chairman Fernando Zobel de Ayala and Metro Pacific chairman Manny Pangilinan in Manila at the weekend.
The Fort Bonifacio project covers 150 hectares next to Manila's Makati financial district. Metro Pacific led a consortium in 1995 that outbid Ayala and other contenders to develop the prime site.
Metro Pacific's holding in BLC will drop from 73 percent to less than 23 percent, and it will now have only three seats on the 15-member BLC board.
Ayala Land and Greenfield will pay $90 million in cash to cover a loan Metro Pacific took out from Larouge B.V., another subsidiary of First Pacific.
In addition, Metro Pacific will turn over $655 million in debt notes to Ayala Land and Greenfield.
First Pacific shares were suspended in Hong Kong on Monday ahead of the announcement and will resume trading Tuesday.
