November 11, 2014

ALI, SMPH and Ortigas factions set aside rift

Based on a disclosure to the Exchange, Ayala Land Inc, SM Prime Holdings Inc, the Rafael Ortigas group and the Fernando Ortigas group have decided to terminate all court cases related to the ownership of OCLP Holdings Inc.

This paves the way for the company to pursue its development plans and maximize the value of its extensive landbank. OCLP Holdings Inc owns Ortigas and Company Ltd Partnership which reportedly owns about 50 hectares of land in central Metro Manila and has access to a potential 30-40hectares in additional land bank which can be redeveloped to maximize earnings.

ALI has earlier been reported to have struck an alliance with the Rafael Ortigas group which controls 47% of OCLP. SMPH meanwhile allied itself with the Fernando Ortigas group which reportedly has a 37% stake in the company. Following the new partnership, ALI and SMPH will have two board seats each in the company.

While we view this positively and highlight the vast potential of OCLP, it remains to be seen how the group can move forward given the possible competing business interests of the various stakeholders. - WealthSec