CHI,CPVDCmerger awaits SEC nod
The merger of Cebu Holdings Inc., (CHI) and Cebu Property Ventures Development Corp. (CPVDC) will be up for approval by the Securities and Exchange Commission.
In separate disclosures to the stock exchange yesterday, CHI and CPVDC said the merger plan is to be submitted for approval of the stockholders of both firms during their respective annual stockholders’ meeting on April 10.
"It will then be filed with the SEC and expected to be approved within the next two months," the companies said.
CHI is the surviving entity after the merger.
The merger will consolidate the firms' portfolio under one listed entity, "creating a unified portfolio for its investments and is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies as a result of the merger."
CHI will exchange 1.06 common shares for every one share of CPVDC Class A common shares or Class B common shares, resulting to 996.77 million CHI shares at the end of the merger.
CHI will issue new shares as consideration of the merger. Its outstanding shares after merger will be 2.157 billion shares: outstanding common shares before the merger–1.920 billion shares; additional shares to be issued to CPVDC stockholders as a result of the merger–236.683 million shares, exclusive of 760.088 million common shares to be issued to itself in exchange of its shares held in CPVDC
CHI developed the 50-hectare Cebu Business Park, and through its subsidiary CPVDC, the 27-hectare Cebu IT Park. Its operations include commercial land; office and residential condominium sales; sale of residential lots; commercial lease of retail space; lease of office space; sale of proprietary sports club shares; and hotel development/ operations via an affiliate Cebu Insular Hotel Co Inc.
CPVDC is the developer of the 27-hectare called Cebu IT Park (formerly Asiatown I.T. Park) which is only 1.5 kilometers away from CHI’s Cebu Business Park. It is a well-planned IT economic zone and hosts a good mix of businesses such as software research and development, BPOs, and contact centers, all of which bring in millions of pesos in investments and employing thousands of people.
CPVDC’s wholly-owned subsidiary, Asian i-Office Properties Inc., operates the eBloc Towers, composed of four office buildings with gross leasable space of about 76,000 sq m.
CPVDC is also a shareholder in Central Block Developers Inc and Cebu District Property Enterprise Inc.