MANILA, Philippines — Businessman Dominic Sytin, the man behind United Auctioneers and United Holdings Power Corp., has signed a deal to acquire a controlling stake in LMG Chemicals Corp.
LMG, a subsidiary of the Garcia family’s Chemical Industries of the Philippines, is a shell company deemed suitable for backdoor listing.
Earlier this year, market investors speculated it would be the vehicle for Okada Manila’s backdoor listing.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, LMG said the total purchase price is P405 million for the sale of Chemphil’s 65.92 percent stake in LMG to Sytin and Robinson Siao.
Sytin will account for 98.5 million shares or P312.9 million while Siao will account for 29 million shares or P92 million.
The closing of the transaction and the full payment of the LMG shares held by Chemphil are subject to, among others, the buyers’ successful conduct and completion of a tender offer of the shares held by the other shareholders of the company in accordance with the Securities Regulation Code,.
Sytin and Siao will pay the tender offer price simultaneously with the payment for shares of LMG.
United Auctioneers, a premier industrial auction company in the Philippines, started its first auction with only a handful of industrial, construction trucks and machines in the Subic Bay Freeport.
According to its profile, United Auctioneers sold over 50,000 units of various industrial, transport and construction machines to over 10,000 foreign and local buyers.
In the next 10 years, the company plans to establish successful auction operations within the Asia Pacific region.
He is also behind United Holdings Power which is into renewable energy projects such as wind and solar power projects.
The company already has hydropower projects including a 15-megawatt hydropower project plant in Bukidnon, a project which is seen to help ease the power shortage in Mindanao.
LMG was incorporated in 1970 as an industrial chemicals manufacturer and distributor.