The Leandro Antonio L. Levite-led Countryside Investments Holdings Corp. has signed a term sheet pact with Manuel V. Pangilinan to invest an initial P5 billion for 71.6 percent in publicly-listed firm Roxas Holdings Inc.
“Countryside’s investment will help Roxas Holdings service debt to avoid bankruptcy, increase the tax revenue of the municipality of Nasugbu, and create more and better jobs for the benefit of local farmers and former sugar industry workers,” Leviste said of the plan he posted in his Facebook account.
Roxas Holdings is owed P4.4 billion to banks including the Bank of the Philippine Islands, BDO Unibank Inc. and state-owned Land Bank of the Philippines. It also has P1.4 billion of trade payables beside.
The Roxas Holdings property is adjacent to 2,494 hectares of land owned by Roxas and Co. Inc., another listed firm chaired by Pedro O. Roxas.
RCI was recently served a notice of collection and threatened with foreclosure over unpaid real property taxes by the municipality of Nasugbu. This comes in the wake of a longstanding land dispute between RCI and some 50,000 residents and agrarian reform beneficiaries.
Once the largest integrated sugar company in the Philippines, Roxas Holdings once operated the sugar mill and refiner Central Azucarera Don Pedro Inc. and 236 hectares in Nasugbu, Batangas.
Roxas Holdings terminated its sugar business in March after 97 years in operation. Roxas Holdings also owns San Carlos Bioenergy Inc., a bioethanol plant in Negros Occidental.
RCI owes various banks P4.3 billion, approximately half owed to BPI, including debt secured by disputed RCI land.
The lender’s exposure to RCI includes a past due loan of P228 million since August 2023 and another P474.5 million loan due since September 2023.
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Leviste also recently told the Securities and Exchange Commission his intention to increase his stake in RCI to over 15 percent.
The investments form part of Countryside’s P5 billion plan to help develop Leviste’s home province of Batangas.
“Countryside previously stated that its investments are aimed at solving social issues. The company believes that equitable compensation and partnering with local communities is key to ensuring the success of any investment,” Leviste said.
Leviste will fund the investment from proceeds from the sale of SP New Energy Corp. (SPNEC) shares to Pangilinan-led Meralco PowerGen Corp. Along with Metro Pacific Investments Corp., the companies have purchased some P20.4 billion worth of SPNEC shares to date. Most of SPNEC’s assets are in Nueva Ecija where the company is developing a 3,500-hectare solar project.
SPNEC also owns and operates a 63-megawatt solar farm in Calatagan, a neighboring town of Nasugbu, Batangas. Leviste has said some of Roxas Holdings properties are suitable for solar farm development.
