ROXAS Holdings, Inc. (RHI) said on Tuesday that the merger among entities within the company had been approved by the Securities and Exchange Commission.
The merger involved Central Azucarera Don Pedro, Inc. (CADPI) and the other wholly owned RHI subsidiaries, namely: Central Azucarera De La Carlota, Inc., Roxol Bioenergy Corp., RHI Agri-Business Development Corp., and Roxas Pacific Bioenergy Corp.
CADPI is the surviving corporation, the listed sugar and ethanol producer said.
“The merger is expected to provide better operational and fiscal management across the other remaining entities in operation under the Issuer,” the company said.
It added that since all entitles involved in the merger are existing subsidiaries of RHI, there will be no material impact to the parent company or issuer’s financial position or business post-merger.
RHI said that as a consequence of the merger, the remaining operating entities under the Issuer will be CADPI and San Carlos Bioenergy, Inc.
Last month, RHI reported that its net loss for the six months ending March 31, 2022 was trimmed to P496 million from P574 million previously.
RHI Chairman Pedro E. Roxas said that while the group’s revenues were higher last year, these gains were adversely affected by the contracted milling operations in CADPI, resulting in lower tons of canes milled, and the “significantly higher” fuel costs for refinery operations.
CADPI’s milling operations were significantly hampered by the decline in the supply of sugarcanes, particularly in the Batangas area, RHI said.
