CHI gets stockholders’ nod for CPVDC merger

CEBU, Philippines — Stakeholders yesterday approved the merger of Ayala-led Cebu Holdings Inc., and Cebu Property Ventures Development Corporation (CPVDC).

CPVDC, the developer of the 27-hectare Cebu I.T. Park, will be absorbed by its mother company CHI, strengthening its foothold in the promising real estate sector in Cebu.

The planned merger was formally presented by CHI chief finance officer Ma. Luisa D. Chiong to the company's shareholders yesterday.

CPVDC, a subsidiary of CHI, was established in partnership with the Cebu Provincial government 27 years ago. The merger consolidates the Cebu portfolio under one listed vehicle, hereby creating a unified story of Cebu investments.

Following the shareholders’ approval, CHI will be the surviving entity and will comply the requirements of three governments for the total absorption of CPVDC to CHI's operations.

With the merger, the Cebu Province will now own a minority stake of 3.60 percent from 8.2 percent prior to the merger.

Chiong further explained that the union will create a wider shareholder base, which will increase liquidity of the shares, allowing investors to focus on one listed company.

Further, it will also address 20 percent minimum public ownership requirements of SEC by 2020.

Ideally, completion of the documentary compliance would take two to three months, depends on the dealing with Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR) and Philippine Stock Exchange (PSE). After which, merger will officially take effect.

CHI president Aniceto V. Bisnar, Jr., reported CHI's strong performance in 2017 with 14 percent growth compared to its registered bottomline in 2016.

CHI registered P3.1 billion revenue last year. Net income likewise exceeded that of the previous year's 11 percent growth with P753.4 million.

"Our performance was driven by solid contributions from our leasing business, which account for 69 percent of the total revenue. Residential sales contributed 11 percent, theater operations five percent and interested and other income brought in 15 percent," Bisnar reported.