LISTED firms AbaCore Capital Holdings Inc. and Greenergy Holdings Inc. have decided to cancel an agreement to develop and operate a logistics center and food terminal in Aplaya, Batangas City.
In a disclosure on Friday, AbaCore said that its subsidiary, Ala Eh Knit Inc., and Greenergy had “mutually agreed to terminate their agreement effective immediately.”
AbaCore did not specify the reason for the termination of the memorandum of agreement between Ala Eh and Greenergy that was signed in March 2021.
Greenergy was supposed to develop and operate a logistics center and food terminal in a 3-hectare property in Aplaya, Batangas City, that was owned by Ala Eh.
Ala Eh was then supposed to increase its authorized capital stock to P1.5 billion and change its corporate name and primary purpose to allow it to enter into the business of operating, managing, leasing and developing the complex.
The deal called for Greenergy to subscribe to 60 percent of Ala Eh’s unissued capital stock in the amount of P900 million, while Ala Eh was supposed to contribute property for its 40-percent share worth P600 million.
For the first half of this year, AbaCore reported a net income of P308.4 million, a turnaround from the P15.5-million net loss recorded in the same period last year.
Greenergy, on the other hand, incurred a net loss of P12.28 million in the same period, a reversal of the P1.72-million net income it booked a year earlier, as its consolidated revenues dropped to P4.87 million from P41.14 million.
On Friday, AbaCore shares rose by 1 centavo to P1.11 each while Greenergy shares also rose by 1 centavo to 39.5 centavos apiece.