RFM Corp. said on Friday that the Securities and Exchange Commission (SEC) had approved on Jan. 31 the merger of the listed food and beverage company and its three subsidiaries.
The company said after the SEC approval of the articles of merger and its issuance of the certificate of filing, subsidiaries Cabuyao Logistics Industrial Corp., Interbake Commissary Corp., and Invest Asia Corp. will be merged into RFM, which will be the surviving entity.
RFM said the merger is “desirable and advantageous” to the parties and their respective shareholders for several reasons, including the integration of the administrative facilities of the four corporations.
The integration will result in economies of scale and efficiency of operations, it said.
“The consolidation of assets of the four (4) corporations will allow the procurement of financing and credit facilities under more favorable terms,” RFM said.
“The merger will make possible the more productive use of the properties of the constituent corporations,” it added.
The merger was approved by RFM’s board of directors on July 25, 2018, and it was cleared by shareholders on Sept. 7, 2018.
RFM will issue 150,617,444 shares as a result of the merger to the three subsidiaries broken down at 29,839,183 for Cabuyao Logistics, 17,765,957 for Interbake Commissary, and 103,012,304 for Invest Asia.
RFM is involved in the processing and manufacture of flour, bread, flour-based products like pasta and cake mixes, sauces, milk and juice drinks, and ice cream. It also operates non-food businesses, which include barging services and leasing of commercial and office spaces that serves the internal requirement of the various operating divisions.
On Friday, shares in RFM rose 0.21% to close at P4.81 each. — Victor V. Saulon

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