Ayala Land Inc. is merging its two Cebu-based property units, Cebu Holdings Inc. and Cebu Property Ventures Development Corp., in a bid to create a unified investment portfolio. CHI will be the surviving entity.
CHI said in a disclosure to the stock exchange Tuesday the two companies would submit the merger plan to their respective stockholders during their annual stockholders’ meeting.
“The merger will consolidate CHI’s portfolio under one listed entity, creating a unified portfolio for its investments and is expected to result in operational synergies, efficient funds management and simplified reporting to government agencies as a result of the merger,” CHI said.
CHI plans to swap 1.06 common shares for every one share of CPVDC Class A common shares or Class B common shares, or equivalent to the issuance of an additional 996,771 million CHI common shares.
CHI’s outstanding shares after the merger will amount to 2.916 billion shares. It said the exchange ratio was based on the net asset values of both companies.
CHI is a full-line property developer with headquarters at the Cebu Business Park, Cebu City. The company is engaged in real estate development, sale of residential and office condominium units, sports club shares and lease of commercial spaces.
CHI, through and through its subsidiary CPVDC, developed the 50-hectare Cebu Business Park.
CPVDC is the owner and developer of Cebu I.T. Park, a 27-hectare property complementing the Cebu Business Park.
CPVDC will cease to exist after the merger, with all its assets and liabilities to be absorbed by CHI.