CONCEPCION Industrial, Inc. (CIC) has poured in P915.45 million into its wholly owned unit Alstra, Inc. as it consolidates its vertical transport solutions business into the latter.
In a disclosure to the stock exchange on Thursday, the listed appliances supplier said it will subscribe to 45.772 million shares out of Alstra’s preferred stock. This will be used to fund the transfer of shares owned by Concepcion-Carrier Airconditioning Co. (CCAC) in Concepcion-Otis Philippines, Inc. (COPI) into Alstra and Otis Elevator Co. (Philippines), Inc. (OEP).
The ownership restructuring involves the sale of CCAC’s 73,950 shares in COPI to Alstra for P915.45 million, and 49,300 shares to OEP for P610.30 million.
To note, CCAC is a 60-40 partnership between CIC and United Technologies Corp. (UTC), while COPI is a joint venture between CCAC and United Technologies International Corp.-Asia Pvt. Ltd. (UTICA).
“The ownership restructuring at COPI was in line with an internal restructuring of the UTC group of companies, as a result of which, Carrier will no longer have an interest in COPI through CCAC,” the company said.
Meanwhile, CIC said the reorganization will consolidate control and ownership of all interests in its vertical transport solutions business segment in Alstra, which serves as its building solutions segment.
CIC’s effective ownership in COPI will remain at 51%.
At the same time, OEP also acquired 21,750 shares in COPI from UTICA worth P269.25 million, consolidating its ownership in COPI to 49%.
Incorporated in 1997, CIC supplies air-conditioners, air-conditioning solutions, and refrigerators under both international and local brands such as Carrier, Toshiba, Condura, and Kelvinator.
It has also recently explored to smart appliances such as smart air-conditioning, which can help consumers monitor energy consumption and real-time usage through a smart device attached to the unit.
CIC’s net income attributable to the parent dropped 14% to P486.53 million in the first half of 2019, amid flat growth in gross revenues to P7.77 billion in the same period.
Shares in CIC went down 0.46% or 15 centavos to close at P32.35 each at the stock exchange on Thursday. — Arra B. Francia