Laos to shun backdoor listing for Chemrez
If companies planning to list their shares in the stock market are hot on backdoor listing, they will be disappointed to find out that Chemrez Technologies Inc. is a poor candidate.
The Lao family, according to an insider, is not keen on joining the bandwagon by selling its soon-to-be-delisted Chemrez to anyone.
The Lao family could easily generate over P100 million from the sale of Chemrez by selling it to companies interested in listing with the Philippine Stock Exchange through a backdoor listing.
D&L Industries chief finance officer Alvin Lao said the family had also considered selling Chemrez when it decided to acquire 100-percent ownership of the latter last month. However, Lao said the family valued its name more than the few millions its would gain from selling the soon-to-be shell company.
This rightfully so, because even after a listed company has been reacquired by a new set of owners through a backdoor listing, the original owners will always be associated with the new listed company.
“Even if we sell it, it would always be associated with the family. Even if the buyer will change the corporate name, it will aways be formally known as Chemrez of the Lao family,” Lao said.