San Miguel Corp. led by utra bilyonaryo Ramon S. Ang is not buying Eagle Cement’s (EAGLE) two prime properties in its takeover of the third-biggest cement manufacturer in the country.
In its tender report, SMC said it would not buy the EAGLE’s two properties, held under KB Space Holdings, located along Epifanio de los Santos Avenue (“EDSA”) and Harvard Street, within Wack-Wack Subdivision in Mandaluyong City.
KB Space will be “carved out” of EAGLE prior to SMC’s tender to minority shareholders who own 11.5 percent of the Bulacan-based cement firm.
The properties – with commercial and
residential buildings currently under construction for eventual lease – would be sold for P1.264 billion.
The proceeds of the property sale would boost EAGLE’s cash holding to P11.5 billion.
EAGLE bought the KB Space in 2015. It was formed in 1994 to engeg in the buy sell and lease of properties.
SMC has agreed to pay P97 billion to buy out the shares of Far East Holdings (60 percent) and Ang family (29 percent) in EAGLE.
Under SMC’s tender offer from November 7 to December 5, investors holding 574.877 million shares of EAGLE can sell their shares for P22.02 each.