CHEMICAL Industries of the Philippines Inc. said Friday it is merging with seven firms as it transforms into an investment holding company.
CIP said in a stock exchange filing its board approved the merger with Unioil Group Inc., Addventure Properties Inc., Citiworld Properties and Development Corp., Exquadra Inc., Quantumlink Realty Corp., Buklod Realty Corp. and Rivertanks Inc. CIP will be the surviving entity.
The company said it would issue new shares in exchange of the assets to be received from the absorbed companies. CIP has yet to finalize the number of shares to be issued to each of the absorbed companies.
It said that in preparation for the merger, its board also approved the increase in the company’s authorized capital stock to P2 billion from P190 million.
CIP said the proposed merger would be presented for shareholders approval during the company’s annual general meeting.
CIP’s major shareholders led by businessman Antonio Garcia sold their controlling stake to a group that includes a company owned by the Unioil Group Inc. in 2020.
The group earlier said it planned to use CIP as backdoor listing vehicle for potential investments in industries related to government’s infrastructure projects including construction equipment industry.
Formed in 1958, CIP serves as the parent company of CAWC Inc. which is engaged in the manufacture of industrial chemicals, Chemphil Manufacturing Corp. which manufactures liquid caustic soda and other industrial chemicals and Kemwater Phil. Corp. which manufactures and trade chemicals.
The company and its subsidiaries sell their products mainly to detergent, beverage and car battery manufacturers, water concessionaires and paper industry.