The developer behind the Westside City project in Manila, Suntrust Resort Holdings, has confirmed its handing over of the reins to the project, on Thursday indicating a share purchase which solidifies its minority stake.
According to a stock exchange filing, Suntrust subscribed to 400 million common shares of Westside Bayshore Holding Corporation, amounting to 40 percent of the issued shares.
‘Through this acquisition, Suntrust will effectively hold an indirect interest in ECRC, a subsidiary of WBHC, which assumed all rights and obligations related to the Westside Integrated Resort Project to ensure its timely construction, development, completion and operation,’ stated the company.
WBHC is a holding company and subsidiary of Travellers, under the Alliance Global group.
In total, Suntrust’s holding, at PHP8 ($0.14) per share, amounts to PHP3.2 billion ($56 million).
Justifying the move, the company noted that ‘The acquisition forms part of Suntrust’s broader corporate restructuring plan, which involves shifting its strategic focus toward holding investments in the tourism and gaming sectors’.
In a filing published on Monday, Suntrust – a subsidiary of the LET Group – indicated that it was pursuing a ‘strategic working agreement with Travellers International Hotel Group, Inc., Westside City Inc., Westside Bayshore Holding Corporation and Entertainment City Resorts Corporation (ECRC) to expedite the completion of the now-expanded Westside Integrated Resort Project’.
Under the agreement, Suntrust would effectively only hold a 20 percent indirect interest in ECRC. As announced on Monday, ‘ECRC will assume all rights and obligations related to the project’.
