Tycoon Manuel V. Pangilinan-led Roxas Holdings Inc. said the company’s prospective sale to the group of businessman Leandro Leviste for P5 billion is far from being final, and requires the approval of creditors and regulators.
“The term sheet is indicative only and does not create any legally binding obligation on any of the parties, as it is subject to the execution and delivery of definitive documentation and fulfillment or satisfaction of various closing conditions,” Roxas Holdings said in a stock exchange filing on Monday.
It issued a news clarification after Leviste, via privately held Countryside Investments Holdings Corp., announced on Facebook the signing of a term sheet to purchase 71.6 percent of Roxas Holdings in an effort to help the company “avoid bankruptcy” due to heavy debts.
On Monday, Roxas Holdings said reports on the purchase were “premature in nature and subject to change”.
The deal is also subject to a comprehensive legal and financial review, the approval of the Philippine Competition Commission and Securities and Exchange Commission, stockholders' approvals and the go-signal from creditors such as Bank of the Philippine Island and BDO Unibank.
In the Facebook post, Leviste said Roxas Holdings has P4.4 billion in bank debts on top of trade payables worth P1.4 billion.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
