Ayala Land Inc. said Tuesday it started the process of securing the requirements to complete the proposed merger with four Cebu-based property units by the first quarter of 2023.
ALI plans to merge with Cebu Holdings Inc., Asian I-Office Properties Inc., Arca South Commercial Ventures Corp. and Central Block Developers Inc. as part of its internal restructuring and consolidation of its Cebu portfolio under one listed entity.
ALI said in a disclosure to the stock exchange it had begun processing the requirements from the Bureau of Internal Revenue for the certificates authorizing registration in its name of the real properties and shares of stock of the absorbed corporations.
“As of today, the CAR application is still under review and pending approval. We are closely monitoring the said application,” ALI said.
ALI said it would also secure the Philippine Stock Exchange’s approval for the additional listing of shares to cover the shares to be issued pursuant to the merger.
It said stockholders would be able to trade the merger shares upon the PSE’s approval of its listing of additional shares.
“ALI endeavors to complete the process of securing the PSE approval for the additional listing of shares and secure from the BIR the CARs within the 1st quarter of 2023,” the property firm said.
The merger is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies.
Under the plan, ALI will issue 609,626,351 shares to the four subsidiary corporations in exchange for their net assets and liabilities.
The Philippine Competition Commission confirmed in March 2021 that the planned merger would qualify as internal restructuring and therefore, exempt from compulsory notification.
The Securities and Exchange Commission in December also approved the merger, with ALI as the surviving entity.
The share price of ALI rose 5.2 percent Tuesday to close at P31.50.