Central Azucarera de Tarlac (CAT) on Friday denied it stands to benefit from a potential multi-billion-peso compensation tied to a recent Court of Appeals (CA) ruling in favor of Hacienda Luisita Inc. (HLI).
The CA ordered the Department of Agrarian Reform (DAR) to pay HLI an additional P28.49 billion for over 4,500 hectares of land distributed under the government’s agrarian reform program. The award stems from a reassessment of the land’s value when it was acquired by DAR in 1989. The court found that the original valuation was only a third of its actual worth and added compensation for lost opportunities and the cost of money over time.
While both CAT and HLI are associated with the Cojuangco family, CAT clarified that it has no ownership or financial stake in the affected land, contrary to recent news reports that appeared to conflate the two entities.
“CAT would like to emphasize that it is neither connected with HLI nor does it have any interest whatsoever in the aforementioned monetary award,” the company said in a disclosure to the stock exchange. “If new information about the unusual price movement arises, rest assured we will promptly disclose it or send a correspondence.”
Shares of CAT surged by as much as 50 percent on Thursday, reaching P16.02 intraday from a previous close of P10.68, before settling at P11.30.
DAR, meanwhile, has filed a motion for reconsideration and signaled its intent to appeal to the Supreme Court should the ruling stand.
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