United Auctioneers Inc. founder and chief executive Dominic Sytin is acquiring a 65.92-percent stake owned by Chemical Industries of the Philippines Inc. in listed LMG Chemicals Corp. for P405 million.
LMG Chemicals said in a disclosure to the stock exchange principal shareholder Chempil signed a share purchase agreement with Sytin and and Robinsion Siao on Oct. 20.
“The company was also advised by Chemphil that the closing and completion of the sale is subject to the fulfillment of certain conditions including the conduct of a tender offer by Messrs. Sytin and Siao in accordance with the requirements of the Securities Regulation Code,” LMG Chemicals said.
“The company will immediately inform the exchange and the Securities and Exchange Commission of any development in this transaction,” it said.
United Auctioneers is a premier industrial auction company in the Philippines. It provides consignors and customers with a venue to buy, sell and trade industrial machines, trucks and other miscellaneous equipment.
It has conducted 102 auctions and sold over 50,000 units of various industrial, transport and construction machines to more than 10,000 foreign and local buyers over the past 17 years.
Following the disclosure, PSE suspended the trading of LMG Chemical for one hour from 9 a.m. to 10 a.m. to allow investors sufficient time to digest the information.
Share price of LMG Chemical fell 8.6 percent to P4.68 Monday.
This is not the first time that Chempil entered into an agreement to sell its majority stake in LMG Chemicals. Chempilin in May also agreed to sell its entire stake in LMG Chemicals to Newmanholdings Inc.
Newmanholdings, however, later withdrew the tender offer.