Kuwait-linked firm scraps Manila Aboitiz ferry buy
MANILA, April 30 (Reuters) - Philippine conglomerate Aboitiz Equity Ventures (AEV.PS) said a Kuwait-linked joint venture walked away from a planned $30 million purchase of its ferry business due to the global financial crisis.
Earlier this month, KGLI-NM Holdings, a venture between local firm Negros Holdings and Management Corp and KGL Investment of logistics group Kuwait and Gulf Link (KGLK.KW), had reduced its planned purchase of a stake in Aboitiz Transport System Corp (ATS.PS) to 32 percent from an originally planned 93 percent.
The joint venture cited the "current constraints in the debt markets" as reason for not pushing through with the deal, Aboitiz Equity said in a statement. In September, the prospective buyer agreed to acquire the combined 93 percent stake of Aboitiz Equity and its sister firm in Aboitiz Transport System Corp for about $100 million.
But earlier this month it said it would limit its purchase to just 32 percent of Aboitiz Transport for $30 million.
Meanwhile, the Philippine holding firm's energy arm Aboitiz Power Corp (AP.PS) said it raised 3 billion pesos ($62 million) from the issue of 3-year and 5-year fixed-rate retail bonds.
Aboitiz Power said the debt issue was 2.5 times oversubscribed. The 3-year bonds carry a coupon of 8.0 percent per annum and the 5-year debt has a coupon of 8.7 percent.
The company has said it will use proceeds from the bond sale to help fund its acquisition of the Tiwi-Makban geothermal power plant from state-run National Power Corp. ($1=48.35 pesos) (Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco)
