CITYLAND DEVELOPMENT Corp. (CDC) will merge with its listed subsidiary City & Land Developers, Inc. (LAND), with CDC as the surviving entity, in a move to streamline operations across the two real estate firms.
CDC said in a regulatory filing on Wednesday that its board approved the merger with LAND on Aug. 26.
In a separate disclosure, LAND said it will be delisted from the PSE and will cease to exist as a separate legal entity upon completion of the merger.
According to CDC, the merger will help streamline operations, eliminate duplicated functions, and achieve cost savings and other economic efficiencies.
“By consolidating the businesses under CDC as the surviving entity, the merger will allow for a simplified ownership structure, better operational coordination, enhanced business focus, and reduced overall corporate costs,” CDC said.
“The merger supports both companies’ strategic objectives to maximize stockholder value and strengthen the merged company’s position in the real estate industry by enabling it to better respond to market opportunities with greater financial and operational flexibility,” it added.
CDC will issue 1.39 billion primary common shares to LAND stockholders as consideration for the merger. LAND currently has 1.58 billion issued and outstanding common shares.
One LAND share will be equivalent to 0.88 CDC share, based on CDC’s preliminary review.
CDC will absorb all of LAND’s assets, liabilities, rights, privileges, and ongoing projects, ensuring continuity and full protection for creditors and stakeholders.
“This integration is anticipated to enhance operational scale, optimize cost management, and support sustainable long-term growth,” CDC said.
Meanwhile, CDC said there is no timetable yet for the implementation of the merger as it is still awaiting corporate and regulatory approvals, including from the Securities and Exchange Commission and the Philippine Competition Commission.
The merger is subject to the approval of the stockholders of both CDC and LAND during their respective stockholders’ meetings on Oct. 9 and Oct. 10, respectively.
CDC and LAND are both engaged in the development of land for residential, office, commercial, institutional, and industrial uses.
Some of CDC’s projects include the 50-story CityNorth Tower condominium in Quezon City and the 24-story Pioneer Heights 1 condominium in Mandaluyong City.
LAND’s projects include the 40-story One Hidalgo condominium in Malate and the 40-story One Taft Residences condominium in Taft.
On Wednesday, CDC shares rose 3.45% or two centavos to 60 centavos apiece, while LAND stocks gained 8.62% or five centavos to 63 centavos per share. — Revin Mikhael D. Ochave
