EEI-Philrock merger approved

EEI Corp. announced yesterday the approval by its board of directors of the merger of wholly owned subsidiary Philrock, Inc. into the company.

EEI – a leader in the construction industry – will be the surviving corporation.

EEI stockholders of record as of Dec. 30, 2000 will have to ratify the board resolution of the EEI Corp.-Philrock merger during a special stockholders’ meeting scheduled on Feb. 1, 2001.

"Philrock’s integration into EEI is expected to result in economies of scale and enhanced efficiency of operations, while allowing for better financial management and sourcing of funds," EEI Corp. chairman Rizalino S. Navarro explained. He added Philrock will benefit from operational and marketing synergies and increased management focus with its consolidation into EEI Corp. since it also engaged in the construction business.

EEI and Philrock have worked together on several projects in recent years notably the EDSA MRT, RCBC Plaza, Ford automotive assembly plant in Sto. Rosa, Laguna, Northgate Cyberzone Information Technology (IT) Park in the Filinvest Corporate City and the Pacific Plaza Towers.

Philrock, founded in 1948, specializes in road and airport construction civil works, foundation engineering and the production of high-strength transit and pre-stressed concrete products. It has been involved in the construction of runways of the Ninoy Aquino International Airport and the Mactan international Airport in Cebu.

At present it is constructing the Maramag-Kibawe Load in Bukidnon and the Tabon-Tabon-Sibagat-Bayugan Road in Agusan. The latter project, worth nearly P520 million and awarded in the first semester, is a package in the over all rehabilitation of the Mindanao road artery funded by a Japanese-sponsored yen loan package.