PSE Circular for Brokers No. 1980-99

August 10, 1999 PSE CIRCULAR FOR BROKERS NO. 1980-99 August 9, 1999 Philippine Stock Exchange PSE Centre Exchange Road Ortigas Center Pasig City Attention: Disclosure Department Listing and Disclosure Group Gentlemen : This is to inform you that HOUSE OF INVESTMENTS, INC. (HI) is negotiating for: 1) The acquisition of a 15% equity stake in Subic Power Corporation (SPC) from EEI Corporation (EEI). HI will acquire 15% of SPC's equity held by EEI, after which the Yuchengco Group of Companies will have a combined ownership of 50% in SPC. HI originally held a 20% stake in SPC when it started operating in 1994. In 1996, HI swapped its holdings in SPC, along with other investments, for a controlling stake in EEI. 2) The sale of HI's 53.9% equity in Philippine Fuji Xerox Corporation (PFXC) to Fuji Xerox Asia Pacific of Japan. LLjur HI is currently negotiating the sale of its 53.9% equity in PFXC to its joint-venture partner, Fuji Xerox Asia Pacific. Thank you for your attention. Very truly yours, (SGD.) JOSE MA. G. CASTILLO III Chief Information Officer SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C Current Report Under Section 11 of the Revised Securities Act and RSA Rule 11 (a)-1(b)(3) Thereunder 1. Date of Report: August 9, 1999 2. SEC Identification Number 15393 3. BIR Tax Identification No. 321-000-463-069 4. Exact name of registrant as specified in its charter: HOUSE OF INVESTMENTS, INC. 5. Philippines 6 /____/ (SEC Use Only) Province, Country or other jurisdiction Industry Classification Code: of incorporation or organization 7. 3rd Floor, GPL Building, 219 Sen. Gil Puyat Avenue, Makati City 1200 Address of principal office Postal Code 8. 894-0320; 813-4538 Registrant's telephone number, including area code 9. Not Applicable Former name, former address, and former fiscal year, if changed since last report. 10. Securities registered pursuant to Sections 4 and 8 of the RSA. Number of Shares of Common Stock Title of Each Class Outstanding and Amount of Debt Outstanding Common Stock, P2 par value 546.56 Million Shares of Common, Net of Treasury P12,752 Million Consolidated Debt Outstanding as of March 31, 1999 11. Indicate the item numbers reported herein: Item No. 2 HOUSE OF INVESTMENTS, INC. (HI) is negotiating for: 1) The acquisition of a 15% equity stake in Subic Power Corporation (SPC) from EEI Corporation (EEI). HI will acquire 15% of SPC's equity held by EEI, after which the Yuchengco Group of Companies will have a combined ownership of 50% in SPC. HI originally held a 20% stake in SPC when it started operating in 1994. In 1996, HI swapped its holdings in SPC, along with other investments, for a controlling stake in EEI. 2) The sale of HI's 53.9% equity in Philippine Fuji Xerox Corporation (PFXC) to Fuji Xerox Asia Pacific of Japan. HI is currently negotiating the sale of its 53.9% equity in PFXC to its joint-venture partner, Fuji Xerox Asia Pacific. Please refer to attached press release. Impact on the Registrant's Current or Future Operations, Financial Position or Results of Operations On the acquisition of a 15% stake in SPC, HI is expected to benefit from a steady stream of dollar dividends over the remaining term of SPC's Build-Operate-Transfer (BOT) contract. On the other hand, the divestment of its holdings in PFXC will allow the Registrant to reduce its debt load, thereby reinforcing its ability to take advantage of other investment opportunities. LibLex SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HOUSE OF INVESTMENTS, INC. By: (SGD.) JOSE MA. G. CASTILLO III Vice President Finance & Treasurer HOUSE OF INVESTMENTS, INC. (HI) PRESS RELEASE AUGUST 9, 1999 HOUSE OF INVESTMENTS, INC. In line with its thrust to rationalize its investment portfolio, House of Investments, Inc. (HI), a member of the Yuchengco Group of Companies, recently initiated moves to divest its holdings in some of its subsidiaries. As reported in June 1999, HI signed an agreement to sell its majority stake in Great Pacific Savings Bank to ABN-Amro Bank. In July, HI entered into an agreement to sell its holdings in South Western Cement Corporation (SWCC) to JMH International Philippines, Inc. The only greenfield cement project in the Philippines with an Environmental Clearance Certificate (ECC), the SWCC project was put on hold in 1998 mainly due to the glut in the local cement market. Negotiations are also currently under way for the sale of HI's majority stake in Philippine Fuji Xerox Corporation to its joint-venture partner, Fuji Xerox Asia Pacific of Japan. HI's moves are aimed at reducing its debt load, thereby reinforcing its ability to take advantage of other investment opportunities. The gains estimated at P153 Million that HI will book on these divestments will partially offset the foreseen drop in equity earnings that may result from the reduced earnings of its construction-sector subsidiary, EEI Corporation (EEI). In terms of new investments, HI is set to acquire 15% of Subic Power Corporation (SPC) from EEI. HI is expected to benefit from a steady stream of dollar dividends from this investment over the remaining term of SPC's Build-Operate-Transfer (BOT) contract. In addition, HI is studying other potential investments that will complement the business line and enhance the synergy of the Yuchengco Group of Companies. LexLib