IPM Group closes in on backdoor listing

MANILA, Philippines - The IPM Group of Companies, a major player in the construction industry and the operator of the Payatas landfill, is closing in on a backdoor listing of its shares in the stock market.

This as listed but dormant miner Minerales Industrias Corp. (MIC) said its stockholders approved several measures that will make the IPM Group a majority shareholder and fold in an integrated waste solutions provider.

MIC said its shareholders allowed IPM Group to purchase 500 million new shares worth P500 million.

Headed by businesswoman Isabelita Paredes Mercado, the IPM Group will acquire shares in MIC that will be taken out of the firm’s increase in authorized capital to 500 million from the current 190 million issued and outstanding shares.

Specifically, IPM Construction and Development Corp., IPM Environmental Services Inc. and IPM Realty and Development Corp. will infuse P350 million, P100 million and P50 million to MIC, respectively.

Shareholders also approved “the investment of approximately P470 million from the proceeds of the subscription into Basic Environmental Systems and Technologies Inc. (BEST),” MIC said.

BEST is the country’s largest integrated waste solutions provider.

The acquisition of BEST will allow MIC to shift its focus from mining metals to mining tons of municipal solid waste being collected, processed and recycled into renewable source of energy such as refuse derived fuel.     

From a mining firm, MIC will revert to being a holding firm as its primary corporate purpose, the company said.

Late last year, BEST senior vice-president Dwight Ramos said the company is looking forward to becoming part of the stock market.  

A backdoor listing, offers a cheaper and faster way to enter the stock market, occurs when a listed firm is acquired by an unlisted firm and the merger will result in a change in business.