C08607-2023 |
Title of Each Class | Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding | |
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Common | 238,496,840 |
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.
Subject of the Disclosure |
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Disposition of Asset by Subsidiary: The Board of Directors of Central Azucarera de Tarlac, Inc. (“Company”) approved the proposed sale of a 200-hectare property by its wholly-owned subsidiary Luisita Land Corporation (“LLC”). |
Background/Description of the Disclosure |
LLC is a wholly-owned subsidiary of the Company. LLC was incorporated and registered with the Securities and Exchange Commission (SEC) on May 11, 1977, primarily for developing, leasing, and selling real properties. |
Date of Approval by Board of Directors |
Oct 10, 2023 |
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Rationale for the transaction including the benefits which are expected to be accrued to the Issuer as a result of the transaction | |
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The proceeds of the sale of the asset by LLC will be primarily used to: |
Date | Dec 8, 2023 |
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Description of the Transaction |
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LLC, a wholly-owned subsidiary of the Company, has agreed to sell a 200-hectare property situated in Tarlac City to Lima Land Inc., subject to certain closing conditions |
Manner |
Sale and purchase of assets payable on installment basis. |
Description of the assets involved |
200-hectare property situated in Tarlac City |
Nature and amount of consideration given or received |
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The value of the consideration is more than 10% of the total assets of the Company. |
Principle followed in determining the amount of consideration |
The amount of consideration is based on the parties’ negotiated purchase price. |
Terms of payment |
Payment will be made on installment basis. |
Conditions precedent to closing of the transaction, if any |
The transaction requires the consent/approval of the Company which owns a controlling interest and more than two-thirds of the outstanding capital stock of LLC. The Company is also the largest creditor of LLC. |
Any other salient terms |
N.A. |
Name | Nature of any material relationship with the Issuer, their directors/ officers, or any of their affiliates | |
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LIMA LAND, INC. | No relationship |
Effect(s) on the business, financial condition and operations of the Issuer, if any |
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The sale of the asset will translate into additional cash for LLC, which will be used to partially settle financial obligations. Savings arising from the decreased debt service costs will be used for reinvestments that are expected to increase shareholder value. |
Other Relevant Information |
This disclosure is amended to reflect the date of disposition. |
Source(s) of funds |
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N.A. |
If any asset so acquired by the issuer or its subsidiaries constituted plant, equipment or other physical property, state the nature of the business in which the assets were used by the persons from whom acquired and whether the issuer intends to continue such use or intends to devote the assets to other purposes, indicating such other purposes |
N.A. |
Name | Addison Castro |
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Designation | Assistant Corporate Secretary and Compliance Officer |