Unioil Group merges with Chemical Industries of the Philippines Inc. (CIP) in an eight-way merger that could potentially result in a backdoor listing. The merger will involve CIP merging with seven other companies, with CIP being the surviving entity. The Board of Directors of CIP approved the proposed merger during a special meeting held on August 24, 2023.
The companies involved in the merger are Unioil Group Inc., Addventure Properties Inc., Citiworld Properties and Development Corporation, Exquadra Inc., Quantumlink Realty Corp., Buklod Realty Corporation, and Rivertanks Inc. Amongst the common shareholders of these firms are Janice Eunicia C. Roxas-Chua, Angeline L. Co, Geminesse L. Co, Sally L. Co, Eugenius Kevin L. Co, and Ray Anthony Roxas-Chua.
The objective of this merger is to consolidate the real estate companies of Unioil Group into CIP. This move aligns with CIP’s strategic direction to become an investment holding company and aims to achieve greater efficiency and economy in management and operations.
The merger is subject to approval from the Securities and Exchange Commission (SEC), as well as confirmation from the Philippine Competition Commission that it qualifies as an internal restructuring. CIP has the authority to issue new shares in exchange for the assets received from the absorbed companies as a result of the merger. However, the final number of shares to be issued is yet to be determined.
Unioil Group, as an investment company, is an indirect shareholder of CIP. Real estate firm Addventure has a stake in CIP through Citiworld and their common directors and officers. Additionally, real estate firms Citiworld, Exquadra, and Quantumlink each own 12.78 percent of CIP and have certain common directors and officers. Buklod Realty Corporation and Rivertanks Inc. also have the same controlling shareholders and certain common directors and officers with CIP.
The approval of the merger and other related matters will be presented at the Annual Stockholders’ Meeting for stockholder approval. This merger has the potential to create a significant impact on the real estate and investment sectors.
