By James A. Loyola
Greenergy Holdings Inc., a listed firm controlled by entrepreneur Antonio Tiu, has signed a memorandum of agreement with new partners to help pursue and fund its planned smart city in Rizal province to decongest traffic in Metro Manila.
In a disclosure to the Philippine Stock Exchange, Greenergy said it has acquired Prime Media Holdings Inc., a subsidiary of RYM Business Management Corporation, through a property to equity swap.
“Under the MOA, properties in… the Province of Rizal will be invested, infused and contributed to Prime in exchange for primary common shares to be issued from the latter’s unissued authorized capital stock,” Greenergy said.
Greenergy said Prime would be the vehicle to raise new funds for the proposed mixed used development which will include a smart-farming agricultural area and smart-city commercial area.
The move is expected to diversify the investment portfolio of Greenergy, improve its overall valuation and raise new capital for the project.
Earlier, Greenergy’s partnership with Korea-based TheBizlink Co. Ltd. for the same transport hub and mixed-use smart city project in Rizal expired due to the latter’s failure to comply with its obligations within the prescribed period.
Thus, the acquisition of Prime Media is intended to complete the project by accommodating the entry of a new foreign investor after the increase in the firm’s authorized capital stock.
Under the MOA, Prime Media shall issue common shares at an issue price equal to the par value in exchange for the investment, infusion and contribution by the investors of parcels of land they own in the Province of Rizal.
The value of the properties shall be properly determined by an appraisal company nominated by Greenergy and RYM.
In a separate disclosure, Prime Media said the proposed investment will require an increase in the firm’s authorized capital stock for the infusion of said assets.
The investment shall be made in tranches with the first tranche to be completed within 90 days from the signing of the MOA. The second tranche will be made within 180 days upon the execution of the MOA.
More investors may contribute additional properties in succeeding tranches.