Benpres-owned City Resources to revive operations, stock trading

City Resources Inc., a shell company owned by the Lopezes’ Benpres Holdings Corp., may soon see its shares traded again on the Philippine Stock Exchange after the Securities and Exchange Commission lifted an order revoking the registration of its securities.

Benpres intends to transfer its shares in unit First Philippine Infrastructure Development Corp. (FPIDC) to City Resources as part of plans to have its toll road business listed on the stock exchange.

Benpres owns 49 percent of FPIDC which, in turn, owns 67 percent of the Manila North Tollways Corp. The remaining 51 percent of FPIDC is owned by Benpres sister firm First Philippine Holdings Corp.

In a disclosure to the Philippine Stock Exchange, City Resources said the SEC has set aside the order of revocation of its permit to sell securities to the public after it submitted the requirements imposed by the corporate watchdog agency and settled penalties amounting to P250,000. The company’s registration of securities was cancelled in 2004.

"We will soon be reviving operations and file the necessary application for the listing of additional shares," City Resources said.

Benpres, however, said FPDIC may still go public although a backdoor listing is the main option being considered as this would be cheaper and takes less time than an initial public offering (IPO).

City Resources is not presently conducting any business operations and has no assets.

The company’s assets over mining rights in the municipalities of Paracale and Labo in Camarines Norte were sold as far back as Jan. 31, 1994 to Crescent Mining and Development Corp.

On March 1994, the stockholders approved the change in the primary purpose of City Resources from mining to that of a holding company. This amendment was subsequently approved by the SEC. Since then the company had no operations.

In Oct. 2000, Lopez Inc. acquired the right to purchase 7.51 million fully paid shares and 79.5 million partially paid shares of City Resources from Starfield Holdings, Inc. representing at least 91 percent of the outstanding capital stock of the company.