MANILA - Metro Pacific Investments Corp. (MPIC), the local unit of Hong Kong-based First Pacific Co. Ltd., is selling a portion of its stake in upscale property developer Landco Pacific Corp. to partner AB Holdings Corp.

In a disclosure to the Philippine Stock Exchange, MPIC said its board has approved the sale of 1.33 million fully paid common shares or 17 percent of Landco for P203.3 million.

The sale will reduce the Manuel V. Pangilinan-led conglomerate's stake in Landco to 34 from 51 percent. Landco, therefore, will no longer be a subsidiary of MPIC.

AB Holdings, which will now own 66 percent of Landco, will pay for the additional stake by way of a promissory note, which will mature in 2 months from today, June 19, the date of the execution of the agreement with MPIC.

The note will be settled by transferring assets owned by Landco or its subsidiaries in favor of MPIC. These assets include shares in two Lando subsidiaries, which own shopping malls, model houses, shares in a club and lots in Landco projects.

Meanwhile, AB Holdings also agreed to repay a P500-million loan that Landco earlier obtained from MPIC. A portion of this loan will be paid through the transfer of Landco assets while the balance will continue to be governed by the existing loan agreement between the parties.

"Conditional upon various conditions being fulfilled as stipulated in the agreement, the settlement of the AB Holdings note shall be completed within 2 months from signing of the agreement and the settlement of the MPIC loan shall be completed within 2 years from signing of the agreement," noted MPIC.

MPIC originally planned to sell its entire 51-percent interest in Landco to exit the real estate business and focus on healthcare, utilities and tollroad.

MPIC partly owns Maynilad Water Services Inc. and controls the concession holder and operator of the North Luzon Expressway. It is also in negotiation for the acquisition of affiliate Philippine Long Distance Telephone Co.'s stake in the Manila Electric Co.