The board of Chemical Industries of the Philippines Inc. has approved the company’s merger with seven companies, with CIP as the surviving entity.
The eight-way merger and related matters is set for endorsement and presentation at its annual stockholders’ meeting for approval.
The seven companies include Unioil Group Inc., Addventure Properties Inc., Citiworld Properties and Development Corp., Exquadra Inc., Quantumlink Realty Corp., Buklod Realty Corp. and Rivertanks Inc.
CIP has either indirect shareholdings at these firms or has the same controlling shareholders or common directors and officers.
“The corporation is authorized to issue new shares in exchange for assets to be received from the absorbed companies as a result of the merger. However, as of the meeting date, the board has yet to determine the final number of shares to be issued in totality and to each of the absorbed companies, and there is a possibility that the number of shares to be issued may be adjusted,” the company told the Philippine Stock Exchange.
The company said this was in line with the strategic goal to become an investment holding company. Its constituent companies own, hold and manage various assets for the same ultimate beneficial owners and are part of one group. “It is deemed advisable to merge the eight companies, in order to achieve greater efficiency and economy in management and operations,” it said.
The merger is subject to the approval of the Securities and Exchange Commission and confirmation of non-coverage for being an internal restructuring by the Philippine Competition Commission. The timetable of the merger, including effective date, will depend on the timeline of regulatory approvals. The company was incorporated on 6 January 1959. Its subsidiaries are engaged in the manufacture, sale and distribution of industrial chemicals and leasing of office space to related and outside parties.
CIP has two business segments: chemicals and leasing. The chemicals segment manufactures and trades chemical products for water and sewage treatment and inorganic coagulants for the paper industry.
The business ceased operations of this segment since the cessation of operations of CAWC Inc., Chemphil Manufacturing Corp. and Kemwater Phil. Corp.
