8990 redeems 2025 bonds early

Mass housing builder 8990 Holdings Inc. on Tuesday announced the early redemption of its 10-year bonds listed on the Philippine Dealing and Exchange Corp. (PDEX).

In its disclosure, 8990 said the trading of its fixed-rate series C Bonds due in 2025 ceased on July 14 and the listing on the PDEX was terminated on July 16.

“all applicable taxes that were due as a result of the application of the provisions of Revenue Regulations No. 14-2012 and its related revenue memorandum circular, have been correctly deducted or withheld. should any deficiency in taxes be assessed, the same shall be borne by the issuer,” the company said in its disclosure.

Last month, 8990 acquired 68 percent of the outstanding common shares of Cebu-based affordable developer Piccadilly Premier Land Inc.

The company said it has signed a deal between Piccadilly, RDAK Land Inc., acrissor

Development Corp. and certain individuals for the said shares.

8990 will pay P88.28 million in cash for this transaction, with half payable upon execution of the investment agreement.

The balance is expected to be settled within the year or upon issuance by the Bureau of Internal Revenue of the Certificate authorizing Registration of the shares purchased.

The agreement comes with an understanding that RDAK and acrissor will also assign certain assets and receivables to Piccadilly. These assets include the Bayanihan Flats Mactan 1 and Bayanihan

Flats Mactan 2 projects.

The three firms combined are all established property developers that have successfully completed affordable projects in Cebu City.

“While it is too early to tell how much this acquisition will contribute to our revenues, we are excited and optimistic with this transaction. Their existing portfolio of affordable-priced projects is expected to complement our current slate of projects and broaden 8990’s reach in property development,” 8990 President and CEO anthony Vincent sotto said.