THE STOCK exchange has lifted the trading suspension on Chemical Industries of the Philippines, Inc. after the latter complied with the required additional information on a planned acquisition.
In a trading notice, the Philippine Stock Exchange (PSE) said that in compliance with the substantial acquisition rule, the company submitted more information on the acquisition of Tierra Ariana Eco Land, Inc.
The move comes after Chemical Industries disclosed a share purchase agreement with Tierra Ariana to acquire 100% of the latter’s outstanding capital stock.
The company said the deal would represent 1 million shares of Tierra Ariana valued at P100 each for a total transaction price of P1.73 billion.
The PSE said earlier that the deal was covered by the rule on disclosure for substantial acquisitions and reverse takeovers under Section 5, Article VII of the Consolidated Listing and Disclosure Rules of the Exchange.
In a separate filing on Wednesday, Chemical Industries said the acquisition was in line with its pivot to venture into the property sector.
“[This] would enable [Chemical Industries] to gain indirect control over the BPI Paseo de Roxas Condominium Corp., the [firm] charged with the management of the Filinvest Financial Center Condominium Project and the entity with authority to develop the Condominium Project,” the company said.
It added that the ultimate objective of the company is to acquire indirect ownership over the parcel of land and be “able to redevelop the condominium project through the condominium corporation.”
The company said the deal is not yet the definitive agreement on the acquisition/transfer of the subject shares between the parties.
“It is an agreement to sell and to purchase shares upon mutual agreement by the Parties at a later date, once the closing conditions imposed under the agreement are either fulfilled and/or waived,” the company said.
Chemical Industries shares went up by 50% or P61.50 to P184.50 apiece on Wednesday. — A.H.H.
