Greenergy, RYM end property-to equity swap deal

MANILA, Philippines — Greenergy Holdings Inc.’s planned investment in Prime Media Holdings Inc. through a property-to-equity swap has been spoiled by the COVID-19 pandemic.

In a stock exchange filing yesterday, the listed company of businessman Antonio Tiu said the memorandum of agreement (MOA) it executed in July last year with RYM Business Management Corp., Prime Media’s parent firm, has been terminated.

“The company wishes to inform the investing public that the parties have mutually agreed to terminate the MOA effective Dec. 28, 2020,” Greenergy said.

“The parties have decided to no longer pursue the transaction contemplated under the MOA due to the impact of the COVID-19 pandemic, the resulting prolonged community quarantine, and the effect thereof on real estate property businesses,” it said.

In a separate disclosure, Prime Media said it was also informed by its parent company of the termination of the agreement as a result of the prolonged lockdown and its impact on the real estate property businesses.

Greenergy, RYM and certain landowners in July last year executed a MOA in connection with an investment in Prime Media Holdings.

Under the MOA, properties in the province of Rizal will be invested, infused and contributed to Prime in exchange for primary common shares to be issued from the latter’s unissued authorized capital stock.

With the MOA, Greenergy was previously seen moving a step closer in its plan to build a smart city in Rizal as part of efforts to bring development to the countryside.

Greenergy earlier partnered with Korea-based TheBizlink Co. Ltd. for the same mixed-use smart city project in Rizal, but the partnership did not push through due to the latter’s failure to comply with its obligations within the prescribed period.

With the termination of the agreement with RYM, Greenergy said it would focus moving forward on its core investments and projects in the areas of food and agriculture, medicinal hemp production, digitalization projects, and development of green infrastructures.

Greenergy last September announced the acquisition of a majority stake in Australian firm Yakuru Group Pty. Ltd., expanding its portfolio to include biotechnology.