Cityland Development Corp. (CDC) said Wednesday it is merging with its listed subsidiary, City & Land Developers Inc. (LAND), to streamline operations and enhance shareholder value.
Under the plan, CDC will be the surviving entity, the parent company said in a disclosure to the Philippine Stock Exchange.
“This internal restructuring is intended to streamline the corporate structure, improve operational efficiency, eliminate redundancies, and enhance overall shareholder value,” the company said.
The merger, cleared by its board, is subject to approval from the stockholders of both companies as well as regulatory clearance from the Securities and Exchange Commission (SEC) and the Philippine Competition Commission (PCC).
Consolidating the businesses under one corporate umbrella will simplify the ownership structure and improve operational coordination, CDC said.
The company expects the merged entity to gain stronger financial and operational flexibility to better respond to market opportunities within the real estate sector.
The companies have a preliminary share swap ratio of 0.88, which means one LAND share is equivalent to 0.88 CDC shares.
CDC said it would issue 1.389 billion common shares to acquire 1.578 billion total issued and outstanding common shares of LAND.
It will absorb all of LAND’s assets, liabilities and rights, resulting in an expanded asset base and equity.
It will also assume all of LAND’s ongoing projects and obligations to ensure business continuity and full protection for creditors and stakeholders.
To provide for the issuance of shares, CDC’s board also approved an increase in its authorized capital stock to 7 billion shares from 5 billion shares.
CDC and LAND both develop high-rise commercial, office and residential condominium projects.
 is set to merge with its listed subsidiary, City & Land Developers Inc (LAND), in a move to streamline operations and enhance shareholder value. The merger is subject to stockholder and regulatory approval.%%excerpt%%){kind=link}