LMG Corp. said its major shareholders terminated talks to sell a controlling stake in the company to financial technology firm Maxwealth Infinity Holdings Corp.
LMG said in a disclosure to the stock exchange said it received information from principal shareholders Ann Marrieta Sytin, Robinson Siao and Value Quest Securities Corp. that they terminated the share purchase agreement over the failure of both parties to close the transaction before the Aug. 31, 2023 deadline.
Under the agreement signed in June, MIHC agreed to purchase 129.674 million shares in LMG owned by the Sytin and Siao families equivalent to 67-percent stake at P3.10 apiece for a total of P402 million.
The parties agreed that the completion and closing of the transaction should be on Aug. 31 2023, or such later date as may be agreed by the parties. The failure to close the transaction is a ground for termination of the agreement, it said.
“As of 31 August 2023, the closing contemplated in the agreement has not occurred and the parties did not reach an agreement for the extension,” LMG said.
Following the termination of the agreement, LMG asked the Philippine Stock Exchange to lift the trading suspension on the company’s shares.
MIHC in 2022 ventured into financial technology with the goal of making the said industry more inclusive by promoting finance, remittances, loans and other economic activities. The group has been working on providing agricultural financial services and an e-wallet project that includes an online payment system.
MIHC also planned to diversify its portfolio by investing in the hospitality industry such as leisure and resort businesses, hotels and restaurants as well as the construction industry.
The Sytin and Siao families acquired majority interests in LMG from Garcia-led Chemical Industries of the Philippines Inc. in 2017.
LMG, however, remains a shell company.
