The Philippine Stock Exchange Inc. (PSE) has approved the listing of LFM Properties Corp. by way of introduction.
LFM Properties, a unit of Liberty Flour Mills Inc. (LFM), will be listed on the PSE’s small, medium and emerging board on November 9.
The company’s parent distributed 10.35 billion common shares of LFM Properties as property dividend to all of its stockholders as of December 18, 2020.
LFM stockholders will receive 69 shares of LFM Properties for every LFM share they hold.
LFM Properties will then list by way of introduction 25 billion common shares at an initial listing price of 10.7 centavos each.
After LFM’s property dividend distribution of 41.40 percent of its shareholdings, the company will own 58.6 percent of outstanding capital of LFM Properties.
The PSE’s rules on listing by way of introduction indicate that listing may be appropriate where the securities of an unlisted issuer are distributed by way of property dividend by a listed issuer to shareholders of that listed issuer.
Liberty Flour was incorporated on December 26, 1958 to engage in the business of manufacturing flour and flour-related products.
LFM’s products consist mainly of bakery flour products under the brands El Superior, LFM Bakers, Pine Tree and LFM Soft. The products are exclusively distributed and marketed by Parity Values Inc., Trade Demands Corp. and Liberty Commodities Corp. LFM sells its products mainly on a wholesale basis principally to members of the baking and food supply industry nationwide.
LFM Properties, meanwhile, is engaged in the business of leasing out office and commercial spaces, while its sister firm Liberty Engineering Corp. is engaged in the sale, lease and purchase of equipment and machinery.
In April, the company’s board approved the purchase of 3.1 hectares of land in Lemery, Batangas, from eight different owners for a total price of P260 million.