Former Philippine trade minister Roberto V. Ongpin, together with his associates, has increased collective holding in real estate developer Alphaland Corp to 50.57%. The stake hike diluted the interest held by UK fund Ashmore. The business relationship between Ashmore and the Ongpin group has reportedly turned sour, according to Inquirer.
The stake increase was done after a capital call on which Ashmore defaulted, according to a press statement issued by the Ongpin group. Ashmore was previously the single largest majority stakeholder in the company with a 69.4% stake in Alphaland, the report detailed.
The group's statement said that because Ashmore refused to fund the real estate firm, Ongpin's group has invested PHP1.5 billion in Alphaland starting 2013. During an Alphaland board meeting on January 2, 2014, a capital call was approved with a January 15 deadline. Shoud Ashmore fail to meet the deadline, its interest would be diluted, the report explained.
Ashmore filed for a temporary restraining order (TRO) to prevent the capital call implementation. However, the TRO was denied by the Makati Regional Trial Court. The British fund's stake in Alphaland was diluted to 24.41% as a result of the lapse of the deadline, Inquirer reported.
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