Greenergy, Abacore unit ink deal to operate food terminal

By VG CABUAG – MARCH 26, 2021
from Business Mirror

Greenergy Holdings Inc. has struck a deal with an affiliate of listed firm Abacore Capital Holdings Inc. for the development and operation of a logistics center and food terminal in a 3-hectare property near the Batangas Port.

The company led by businessman Antonio L. Tiu said it signed a memorandum of agreement with Abacore unit’s Ala Eh Inc., whose existing shareholders will infuse the 3-hectare property into the company in exchange for shares equivalent to 40 percent after the increase of its authorized capital stock. The said property is in Barangay Santa Rita, Aplaya, Batangas City.

According to the plan, Ala Eh will increase its authorized capital stock to P1.5 billion, change its primary purpose to allow it to engage in the business of operating, managing, leasing and developing the logistic center and the food terminal complex and also change its corporate name.

Greenergy will then subscribe to the increase of Ala Eh’s capital stock to as much as 60 percent or about P900 million, effectively having a controlling ownership in the company.

Greenergy said in its disclosure that it “shall manage the construction, development and operation of the logistics center consisting of cold and dry storage facilities, agri-processing facilities and other facilities that are necessary for marketing and procurement activities.”

The facility, which is accessible to the Batangas port, will ensure that agricultural produce are safe and fresh before they are distributed to their respective local and international markets, the company said.

The logistics and food terminal complex is envisioned to boost agricultural productivity and enable farmers and fishermen to reach a wider market in the country and across the globe.

It will also enhance Greenergy’s food storage capacity and boost its trading and export capabilities, it said.

“It is the first step in Greenergy’s goal of establishing food terminals in each region of the country that would help in achieving food security and rolling out a commodity and futures exchange,” the company said.

Greenergy has been diversifying its portfolio to include agriculture, agri-tourism, real estate development, banking and finance and information technology.

The said deal was made after the board of Abacore recently approved the acquisition of Libertad Logistics Integrated Zone Builders Development Corp., which owns prime properties contiguous to the Port of Batangas. The property is valued at P6.5 billion or at a price of P23,600 per square meter as appraised by an independent appraiser as of March 16.

“Abacore likewise authorized management to negotiate, enter and finalize joint venture agreements and partnerships with qualified developers, and operators for the operations of a logistics center, food terminal, grains silo, blast freezing facility, warehouses and other facilities allied to the Batangas Port project where the Libertad property is located,” it said in an earlier disclosure.