EEI assuming P11.42 billion liabilities of subsidiary

MANILA, Philippines —  Construction giant EEI Corp.  is assuming liabilities of wholly owned subsidiary First Orient International Ventures Corp. in exchange for shares.

In a stock exchange filing, EEI said it has secured the consent of creditors for the acquisition of the liabilities of FOIVC amounting to P11.42 billion in exchange for unissued shares.

FOIVC is engaged in the business of acquiring, using, improving, developing, selling, leasing and holding real estate property for investment and other purposes.

With the consent of the creditors secured, EEI said that it has also proceeded to the execution of the share subscription agreement and has submitted the same to the Securities and Exchange Commission for approval.

The subscription agreement covers 53,195 shares in exchange for assuming FOIVC’s obligations.

EEI said the assignment of FOIVC’s liabilities in exchange for shares strengthens its subsidiary’s balance sheet, improves creditworthiness and enhances operational flexibility, while allowing the parent to formalize capital support and increase its ownership stake.

“With the assignment of the liabilities, EEI now has better opportunities to manage the debt at the consolidated level. Likewise, the improvement of the subsidiary’s financial position opens the door to potential opportunities for joint ventures and other strategic partnerships,” the company said.

EEI is making a big push for its diversification into real estate development, a move that will form part of its long-term growth strategy to evolve from a pure-play construction company into a fully integrated property and infrastructure developer.