PSE Circular for Brokers No. 2392-98

October 19, 1998 PSE CIRCULAR FOR BROKERS NO. 2392-98 October 16, 1998 SECURITIES & EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. October 16, 1998 Date of Report (Date of earliest event Reported) 2. SEC Identification Number CE-02536 3. BIR TIN 003-828-269-V 4. ABOITIZ EQUITY VENTURES, INC. Exact name of registrant as specified in its charter 5. Cebu City, Philippines Province, country or other jurisdiction of incorporation 6. Industry Classification Code 7. Archbishop Reyes Ave., Banilad Cebu City 6000 Address of principal office Postal Code 8. (032) 2310-705 Registrant's telephone number, including area code 9. N.A. Former name of former address, if changed since last report 10. Securities registered pursuant to Sections 4 and 8 of the RSA Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Stock P1 Par Value 5,479,972,074 11. Indicate the item numbers reported herein: 9(a)(1)(J) Item 9 (a)(1)(J) Purchase or sale of stock or convertible debt securities of other companies when the amount exceeds a significant part of the issuer's or purchaser's net worth. As part of the strategic reorganization and realignment of AEV's core business which are Power and Financial Services, Aboitiz Power Corporation (APC), a 100% AEV owned holding company whose interest includes power distribution, power generation, power transmission and energy services, transferred 242,975 common shares in Hydro Electric Development Corporation (HEDCOR) with a book value of P25,335,003.00 to Philippine Hydropower Corporation (PHC). Cdphil PHC is 100% owned by APC and is the Aboitiz Group's holding company for all its hydropower business interests which includes the following: (1) BOT hydro projects: Bakun AC, Tagoloan, Timbaban and Villa Siga, and (2) Mini hydro plants owned by HEDCOR. With the transfer of HEDCOR's ownership from APC to PHC. AEV was able to consolidate of its hydropower generating business under one holding company and effectively separated the power distribution and non-hydro generating business which remains under the direct ownership of APC. The HEDCOR owns and operates eleven (11) mini hydropower plants with an aggregate capacity of 25,700 kw's located in the Provinces of Benguet and Davao. The transfer of ownership of HEDCOR from APC to PHC is a net income and net asset neutral transaction and will have no adverse or negative impact on AEV. This will further confirm AEV's commitment to a focused strategy by concentrating within its core business of power and financial services. LexLib SIGNATURE(S) 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. Aboitiz Equity Ventures, Inc. By: (SGD.) SYLVA A. PADERANGA Asst . Corporate Secretary