EEI CORP.’S board of directors has approved the acquisition of P11.42 billion in liabilities of its subsidiary First Orient International Ventures Corp. in exchange for unissued shares.
“The Board of Directors approves the acquisition of the liabilities of First Orient International Ventures Corporation (FOIVC), its wholly owned subsidiary,” EEI said in a stock exchange disclosure on Thursday.
The listed construction company said the assignment of liabilities requires creditor consent, while the issuance of FOIVC shares in exchange for those liabilities is subject to Securities and Exchange Commission (SEC) approval.
EEI noted that the transaction further strengthens FOIVC’s balance sheet and enhances its creditworthiness.
“[It] enhances operational flexibility, while allowing the parent to formalize capital support and increase its ownership stake. This structure optimizes group financing and simplifies future restructuring, all while maintaining a fair exchange of value and improving long-term strategic control,” EEI said.
In October, EEI announced that it had fully acquired FOIVC for P2.8 billion, expanding its real estate investment holdings. FOIVC owns 49 hectares of land in Cavite, including Island Cove, a Philippine offshore gaming operator (POGO) hub, and is engaged in acquiring, developing, leasing, and holding real estate for investment purposes.
EEI said the transaction is expected to diversify its revenue streams and add long-term value to its business.
In a separate disclosure on Thursday, EEI said its board had also approved the consolidation of its two wholly owned subsidiaries, EEI Ltd. and EEI Realty Corp., under EEI Ventures, Inc., its investment and holding company, through a share-swap agreement.
Under the agreement, EEI Ventures will issue 300 million shares at P22.33 apiece to EEI in exchange for 100% of EEI Ltd. and EEI Realty.
“The consolidation also supports more efficient capital raising, as investors are increasingly drawn to ‘pure-play’ business units. Housing non-construction assets under EEI Ventures makes it easier to attract strategic partners or explore future financing options without affecting the parent company’s balance sheet,” EEI said.
At the stock exchange on Thursday, shares in EEI closed eight centavos, or 2.9% lower, at P2.68 apiece. — Ashley Erika O. Jose
