DMCI considering sale of AG&P stake
abs-cbnNEWS.com | 10/20/2008 1:00 PM
Printer-friendly version | 
Send to friend | 
Share your views
DMCI Holdings Inc. confirmed Monday it was considering selling its stake in construction firm Atlantic Gulf and Pacific Co of Manila Inc (AG&P) but said it has not yet arrived at an agreement with any parties on the sale.
"As such, we cannot confirm any amounts and/or details as of the moment," Aldric Borlaza, company finance officer, told the local bourse.
According to newspaper reports over the weekend, a New York-based investment bank has offered to buy DMCI's 98-percent stake in AG&P for P2.5 billion. The amount includes AG&P's debts.
The country's oldest construction company, AG&P has been a leader in steel fabrication. It has forged long-term partnerships with businesses not only in the Philippines but also in Japan, Korea, Italy, France, Germany, the United Kingdom and United States.
Currently, the company has a $100-million contract involving modular steel works and fabrication for Goro Nickel, a mining firm in New Caledonia in France.
Aside from construction, parent DMCI, which is owned by the Consunji family, is also engaged in property development through DMCI Homes, water distribution through Maynilad Water Services Inc, and coal production under unit Semirara Mining Corp.
DMCI's first-half net profit fell 73 percent from a year ago to P543 million, due largely to the absence of one-off gains and foreign exchange losses.
