Listed firm LMG Corp. has terminated a transaction that would have allowed the backdoor listing of Maxwealth Inifinity Holdings Corp., one of the country’s largest financial technology company.
Under the proposal, the buyer, Maxwealth, were to purchase 129.67 million common shares registered under Ann Marrieta L. Sytin, Robinson W. Siao and Value Quest Securities Corp.
Sytin was supposed to sell 98.58 million shares for a total of P305.61 million, Siao’s 29 million shares for P89.9 million and Value Quest’s 2.09 million shares for P6.48 million.
The agreement was to complete and seal the transaction by end-August and that failure to arrive is a ground for termination of the pact.
The practical impact of the agreement would have triggered a tender offer for the rest of the shares being held by other holders and result in the backdoor listing of Maxwealth at the Philippine Stock Exchange.
“As of 31 August 2023, the closing contemplated in the agreement has not occurred and the parties did not reach an agreement for the extension of the long stop date. The parties signified their intention to mutually terminate the agreement,” LMG said.
According to the company, the transaction does not require LMG board approval since it was not a party to the agreement.
“Moreover, since the buyer did not acquire the shares of the sellers, the revised rules on backdoor listing does not apply,” it said.
As engineered by its planners, a backdoor listing would have occurred had the listed company acquire the assets of an unlisted company, person or group of persons and vice versa.
“Considering the termination of the agreement, the corporation is no longer involved in any acquisition of shares. Hence, the corporation is requesting the Philippine Stock Exchange to lift the trading suspension imposed on the shares of the corporation on 7 June 2023,” it said.
LMG shares were last traded on 6 June when these closed at P3.35 apiece.
Maxwealth is chaired by Alfonso Huang, honorary consul of Guinea-Bissau to the Philippines and 2022 Philippine Charity Ambassador.
Maxwealth’s investments include interests in various fintech companies.
