C04694-2018

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jul 10, 2018
2. SEC Identification Number
1179
3. BIR Tax Identification No.
003-946-426
4. Exact name of issuer as specified in its charter
WELLEX INDUSTRIES, INC.
5. Province, country or other jurisdiction of incorporation
METRO MANILA, PHILIPPINES
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
35th Floor, One Corporate Center, J. Vargas Ave. cor. Meralco Ave., Ortigas Center, Pasig City Postal Code 1600
8. Issuer's telephone number, including area code
6328480848
9. Former name or former address, if changed since last report
NA
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares – P1.00 par value 3,271,937,380
11. Indicate the item numbers reported herein
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The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Wellex Industries, IncorporatedWIN

PSE Disclosure Form 4-32 - Reply to Exchange's Query

Subject of the Disclosure

REPLY TO EXCHANGE'S QUERY REGARDING MEMORANDUM OF AGREEMENT WITH AVIDA LAND
Description of the Disclosure

1. PHES and subsidiaries of WIN, as landowners, entered into a MOA with Avida Land in December 2012 with regard to approximately 16.8 hectares of land in Valenzuela City. The MOA provides for the transfer of such land to Avida free and clear of informal settlers, occupants, technical errors, encumbrances and liens. For its part, Avida will prepare a master plan and market study for the development timetable of the property. At such future date when the transfer is ready, the parties will come into mutual agreement on the consideration thereof.

2. The benefits to WIN will arise from an opportunity to team up with one of the Philippine’s top real estate developers. As mentioned earlier, however, the consideration of the said land will be determined once all of the conditions for turnover are met by the landowners. At this point, while a major hurdle was achieved in having the bank encumbrances lifted from the titles, there are other minor items that are still being addressed to fully comply with the conditions precedent in the said MOA.

3. The joint venture involves the aforesaid 16.8 hectares of land in Valenzuela City, and the transfer of such land to Avida upon the following conditions precedent: that Avida shall be satisfied with its due diligence over the titles, and a market study thereof shall have been conducted to its satisfaction; that technical errors on survey plats shall be rectified; that the property shall have been cleared of all structures, settlers and occupants and that peaceful vacant possession shall be available; that the land shall be reclassified to accept a residential development; that the title shall be free of all encumbrance, and that court cases relating to the property shall have been fully extinguished. The consideration of the transfer shall be determined at some future time that the property shall be ready for transfer.

4. Subsidiaries of WIN, Pacific Plastic Corporation, Inland Container Corporation and Kennex Container Corporation, owns 151,836 square meters while MPC Plastic Corporation, Westland Pacific Properties Corporation, Plastic City Corporation and International Polymer Corporation own 16,123 square meters. These 16.8 hectares are deliverables but the total area conceptualised for the said project is 21.3 hectares in which Philippine Estates Corporation has 3.5 hectares and Crisanta Realty Development Corporation (CRDC) has 1 hectare. MPC, WPPC, PCC, IPC and CRDC are independent corporations which has no connections or relations with either WIN or PHES.

5. It is too early to make a numerical forecast on the effect of such disclosure to the financial operations of WIN. As mentioned above, while the lifting of the legal encumbrances on the titles thereof represent clearance of a major hurdle, there are still minor items pending in order to complete the landowner’s obligations under the MOA. The P4.21 billion estimated aggregate gross income over the 5-year project projection period was initially estimated to come from an average yield of P20,000 per square meter on a proposed project concept of 21 hectares, of which 16.8 hectares is the subject matter of the MOA.

6. The MOA has not be rescinded nor amended.
Information Requested

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Filed on behalf by:
Name Mariel Francisco
Designation Corporate Secretary