LMG Chemicals Corp. said its principal shareholder Chemical Industries of the Philippines is selling the company to another group of businessmen.
LMG last Monday said that Chemphil has entered a share purchase agreement with Dominic L. Sytin and Robinson W. Siao to sell its 65.92-percent stake in LMG for P405 million.
“The company was also advised by Chemphil that the closing and completion of the sale is subject to the fulfillment of certain conditions, including the conduct of a tender offer by Messrs. Sytin and Siao in accordance with the requirements of the Securities Regulation Code,” LMG said.
According to the rules, Sytin and Siao will have to make a tender offer for the rest of the LMG shares.
LMG was incorporated on April 20, 1970, as industrial chemicals manufacturer and distributor. This includes caustic soda, sulfur and other industrial chemicals. In October 2007, LMG transferred its acid plant and tank farm properties to wholly owned subsidiaries Chemphil Manufacturing Corp. and LMG Land Development Corp.
In August 2008 LMG and LMGLDC, together with Chemphil, entered into a shares and asset purchase agreement with Chemoil Fuel Philippines Inc. (CFPI) and Chemoil Energy Philippines Inc. (Cepi) to sell and transfer the entire LMG shares in LMGLDC and to sell the property owned by Chemphil in Pinamucan, Batangas to CFPI and Cepi, respectively.
In October 2009 LMG declared LMG’s investment in shares of CMC and Kemwater Phil. Corp. as property dividends. Two months after, a deed of assignment was executed to assign LMG’s rights, titles and interest over the shares in CMC and KPC to the stockholders of LMG in proportion to their respective shareholdings.
As a result of the divestments, LMG is now only engaged in the trading of chemical products. The products traded include caustic soda, sulfur and other industrial chemicals.