Greenergy, Abacore scrap P1.5-B Batangas food terminal project

Philippine Tribune
Philippine Tribune

Publicly-listed firms Greenergy Holdings Inc. and Abacore Capital Holdings Inc. have scrapped their agreement to invest P1.5 billion for the development and operation of a logistics center and food terminal in Batangas City.

In disclosures to the Philippine Stock Exchange (PSE), both firms said Greenery and Abacore’s affiliate Ala Eh Knit Inc. have mutually agreed to terminate the Memorandum of Agreement they had signed in March 25, 2021. No reason was given for the termination.

“Moving forward, GREEN will focus on its core investments and projects in the areas of renewable energy and sustainable community development,” Greenergy said.

Under the scrapped MOA, Greenergy planned to develop a logistics center and food terminal in a three-hectare property owned by Ala Eh in Barangay Santa Rita, Aplaya, Batangas City.

Ala Eh was supposed to increase its authorized capital stock to P1.5 billion and change its primary purpose to allow it to engage in the business of operating, managing, leasing, and developing the Logistic Center and the Food Terminal Complex.

The existing shareholders of Ala Eh was supposed to the property into Ala Eh in exchange for shares equivalent to 40 percent of Ala Eh worth P600 million.

GREEN, on the other hand, should have subscribed to P900 million worth of shares and manage the construction, development and operation of the Logistics Center consisting of cold and dry storage facilities, agri-processing facilities and other facilities that are necessary for marketing and procurement activities.

The property is part of a larger tract of land suitable for port facilities under the umbrella of the Abacore group, of which Ala Eh and its immediate parent company, Tagapo Realty Company, Inc., are part of. 

Ala Eh was to be the corporate vehicle that will be used by the parties for the development and operation of a logistics center and food terminal in the property.

GREEN said the transaction would have created synergy with its various affiliates and diversify its revenue streams in an industry with strong growth potential during pandemic. 

Further, the logistics center and food terminal hub in Batangas port would be able to store local and imported food for trading with foreign and local institutional buyers which GREEN’s affiliates are active in. 

The creation of the food terminal will allow institutional buyers and suppliers to hedge against volatility therefore promoting active trade and optimize farmers’ potential income.

 

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