Philippines: CIP divests controlling stake in LMG Chemicals for $8m

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Chemical Industries of the Philippines Inc (CIP) has raised up to $8 million (PP397.33 million) in the sale of its shares in LMG Chemicals Corp to Manila-based Newmanholdings Inc.

Both CIP and Newmanholdings entered into a share purchase agreement on Tuesday (May 16) for the sale of over 127.5 million of Chemphil’s shares in LMG priced at P2.97 per share representing 65.92 per cent of the total issued and outstanding capital stock of the company.

“The company would like to convert its equity to cash. It is expected that after the sale, it will generate income for the seller of LMG shares,” CIP said, in its statement.

LMG is a subsidiary of CIP engaged in trading of chemical products until it ceased trading operations in 2014.

CIP is a Philippine-listed company that also owns CAWC Inc, engaged in the manufacture of industrial chemicals, Chemphil Manufacturing Corp which manufactures liquid caustic soda and other industrial chemicals, then Kemwater Phil Corp which manufactures and trades chemicals for the water and sewage, paper, and detergent industries.

The company and its subsidiaries sell their products mainly to detergent, beverage, and car battery manufacturers, water concessionaires, and paper industry.

CIP last traded at P191.00 per share on Tuesday (May 15).

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