PHILIPPINE H2O Ventures Corp., a company owned by businessman Jolly Ting, said it is selling its water business to Tabuk Water Corp. for P442 million, as part of the company’s clean-up measure with the sale of the entire business to the company led by Davao businessman Dennis Uy.
Jolliville Holdings Corp. (JOH), the company owned by Ting, is the parent company of both H2O and Tabuk.
H2O’s water business refers to all of its shares and interests in Calapan Waterworks Corp. consisting of 137.04 million common shares representing 99.75 percent of the company.
The shares and interests of H2O in Calapan Waterworks represent all of H2O’s existing business, noncash assets and liabilities, the company said in its disclosure to the Philippine
Calapan Waterworks is the owner and operator of the local waterworks system of Calapan City, Oriental Mindoro, and is engaged in the business of developing and utilizing water resources to harness, produce and supply water for domestic, municipal, agricultural, industrial, commercial and recreational purposes.
The sale of water is part of the memorandum of agreement of the firms controlled by Ting and Uy signed late last year.
Uy’s Udenna Development Corp. (Udevco) is buying Ting’s 62.006-percent stake in H2O, but part of the deal was to spin off all of its existing business and assets, allowing for a backdoor entry for Udenna or one of its companies.
“Please be advised further that JOH board approved an additional subscription in Tabuk Water Corp. of 440 million common shares at P1 per share, on the condition that the [agreement] between JOH and Udevco shall be consummated. The additional subscription will be paid in full pending approval of the SEC [Securities and Exchange Commission] of the increase in capital application of Tabuk,” it said.