Greenergy Holdings Inc. and Ala Eh Knit Inc. said Friday they agreed to terminate their joint venture partnership to develop a logistics center and food terminal in Batangas province.
The two parties agreed to end the partnership two years after they signed a memorandum of agreement to develop and operate a logistics center and food terminal on a three-hectare property in Aplaya, Batangas City.
Greenergy did not provide the reason for the termination of the project. Ala Eh is an affiliate of listed firm Abacore Capital Holdings Inc.
Greenergy said it planned to focus on developing and expanding its core investments and projects in renewable energy and sustainable community development
The company has investments in real estate, agri-tourism, renewable energy, information technology, financial technology, biotechnology and agriculture, specifically in the cultivation, production and trading of agricultural products locally and globally.
Greenergy, owned by businessman Antonio Tiu, earlier said it planned to use the planned food terminal for the trading, storage and logistics requirements of the agriculture industry.
The project was envisioned as a new business opportunity in line with Greenergy’s business strategy, which aims to diversify its investment portfolio and expand revenue streams in a project with strong growth potential.
Under the joint venture agreement, Ala Eh was supposed to increase its authorized capital stock to P1.5 billion, change its corporate name and primary purpose to allow it to engage in the business of operating, managing, leasing and developing the logistic center and the food terminal complex.
Greenergy will then subscribe to 60 percent of unissued capital stock of Ala Eh equivalent P900 million.
The shareholders of Ala Eh were also supposed to infuse the Batangas property into the joint venture in exchange for 40-percent stake in the company.