LUCIO TAN’S holding company LT Group, Inc. said on Monday that one of its indirect subsidiaries PMFTC, Inc. is merging with Philip Morris Manufacturing Philippines Inc. as part of an internal restructuring effort.
In a disclosure to the stock exchange, the company said PMFTC will be the surviving corporation in the merger, which is scheduled to take effect on June 1, depending on the approval of the Securities and Exchange Commission.
“The merger is part of an internal restructuring process and is not expected to materially affect the operations, earnings and ownership of PMFTC,” the disclosure said.
PMFTC is an indirect subsidiary of the LT Group, through Fortune Tobacco Corp., while Philip Morris Manufacturing is one of PMFTC’s shareholders.
“As a result of the merger, PMFTC’s articles of incorporation will be amended in accordance with the articles of merger and plan of merger,” LT Group said.
During the third quarter of 2020, LT Group posted a 10.9% increase in its net income to P6.08 billion despite lower gross revenues.
The company’s gross revenues for the quarter fell 2.8% year on year to P22.87 billion.
For the January-to-September period, LT Group posted a 9% increase in its attributable net income to P16.10 billion, with its tobacco business accounting for three-fourths of the total, at P12.12 billion.
On Monday, shares in LT Group at the stock exchange rose 0.46% or six centavos to close at P13.20 apiece. — Revin Mikhael D. Ochave