Chemical Industries of the Philippines Inc (CIP) on Wednesday announced that it is divesting 65.92 percent of its stake in LMG Chemicals Corp.
the planned share sale is intended to raise capital to service debts and working requirements. Majority of its board of directors approved the sale that will see the disposition of its controlling stake.
Launched in 1970, LMG Chemicals Corp was previously an industrial chemicals manufacturer and distributor. Starting 2009, upon the divestment of its subsidiaries, its operations have shifted to the trading of chemical products such as caustic soda and sulfur.
CIP is the parent company of LMG. The company and its subsidiaries are engaged in the manufacturing and trading of products which are mainly sold to detergent, beverage, and car battery manufacturers, water concessionaires, and paper industry.
Both CIP and LMG were among the 15 listed companies that received the trading suspension from the Philippine Stock Exchange last May 2016 for failing to comply with their reportorial obligations.
As part of the plan, CIP will sell a total of 127, 583, 458 outstanding LMG shares. Price per share will be disclosed upon signing of the contract, in addition to terms of payment, the principle followed in the determining amount, among others.
CIP and LMG last traded on the Philippine Stock Exchange market at PHP165.10 and PHP5.90 per share, that is about US$3.31 and US$0.12 respectively.
By Vivian Foo, VCNewsNetwork
This news is published on Reuters.