Jolliville assets to decline on reduced ownership in subsidiary Granville

LISTED Jolliville Holdings Corp. is expecting its consolidated net assets to fall by P236,904 when it reduces its ownership interest in a wholly owned subsidiary.

Granville Ventures, Inc., a 100% owned unit of Jolliville, is applying to increase its capitalization by P9 million. However, Jolliville said it would no longer subscribe to the additional shares, resulting in a reduction of its ownership in Granville to 18.18%.

The listed firm told the exchange on Tuesday that the decision not to subscribe to the shares was due to its “limited resources at this time,” such that it “cannot maintain its current ownership interest in (Granville) following the latter’s capital call.”

“Once (Granville) ceases to be a subsidiary of (Jolliville), consolidated net assets will be reduced by P236,904, net of liabilities amounting to P37,171 only,” the company said.

When Jolliville first told the exchange of the development last week, it said it would retain its current ownership of 499,995 shares in the subsidiary. But the increase in Granville’s capitalization will mean the subsidiary’s financials will no longer be included in Jolliville’s consolidated financial statements.

Granville was incorporated in 2001 and has not been in active business since. Jolliville said the subsidiary currently has a total asset of P274,075 and an investment property valued at P103,757.

Jolliville’s total assets as of June stood at P5.73 billion, up 1.11% year-on-year. Its attributable net income dropped 21% to P28.17 million during the six months, on the back of a decline in rental revenues due to business closures during the coronavirus-related lockdown.

Jolliville is also engaged in the power and business sectors. Its shares in the stock exchange closed flat on Tuesday at P4.30 apiece.