CIP disclosed that majority of its board of directors on Wednesday (April 19) approved the sale of its controlling stake in LMG, which is one of its subsidiaries engaged in the manufacturing and distribution of industrial chemicals.
The company cited “income from disposition” as the reason behind the planned share sale.
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 appropriate contract, including terms of payment, principle followed in determining the amount, among others.
Both CIP and LMG were among the 15 listed companies that received trading suspension from the Philippine Stock Exchange last May 2016 for failing to submit annual reports. PSE, however, lifted the suspension on CIP and LMG a week after complying to reportorial obligations.
Incorporated in 1970, LMG manufactures and distributes caustic soda, sulfur and other industrial chemicals. CIP and its companies sell their products mainly to detergent, beverage, and car battery manufacturers, water concessionaires, and paper industry.
CIP and LMG last traded on the Philippine Stock Exchange at P165.10 and P5.90 per share, respectively.