DENNIS UY’S UDENNA TO ACQUIRE PHILIPPINE H2O

BUSINESS tycoon Dennis Uy is set to make another acquisition, this time for a controlling stake in Philippine H2O Ventures Corp., an investment holding company which is engaged in the operation, maintenance, and distribution of water supply systems through its subsidiary, Calapan Waterworks Corp.

The Davao-based businessman has struck a memorandum of agreement (MOA) with Jolliville Holdings Corp. to buy 62 percent of H2O for P327 million.

In a disclosure to the Philippine Stock Exchange on Tuesday, property developer Jolliville said its board of directors, along with other sellers, has approved the sale of 150.8 million shares in H2O to Udenna Development Corp., representing 62 percent of the issued and outstanding capital of HTO, inclusing of the 36.73 percent equity held by Jolliville.

The other sellers are KGT Ventures Inc., Melan Properties Corp., NGTO Resources Corp., OTY Development Corp., Nanette Ongcarranceja, Ortrud Yao, Kenrick Ting, Jolly Ting, and Lourdes Ting.

Based on the MOA, prior to the sale of H2O, the latter must complete a spin-off by selling all of its existing business and assets. It is also mandated to collect all receivables, settle all obligations, assign its contractual interests, transfer or reassign its employees and settle or dissolve its retirement fund.

The parties will execute the sale purchase agreement within 45 days after the signing of the MOA.

“The total consideration for the H2O sale to be received by the sellers shall be P327 million plus 62.006 percent of the remaining cash assets of H2O on closing date,” Jolliville said.

“Udenna shall launch a mandatory tender offer to H2O investors pursuant to the Securities and Regulation Code,” the statement said.

H2O was incorporated as Calapan Equity Ventures, Inc. in 2009 as an investment holding firm. It is wholly-owned by the Jolliville Group.