Lim family consolidates operations

Businesswoman Elena Lim has consolidated the operations of cable company Destiny Cable into the publicly-listed Solid Group Inc. through a share-swap worth approximately P2.415 billion.

In a disclosure to the Philippine Stock Exchange, SGI corporate information officer Enrique Ligeralde said the company's board had approved the acquisition of Destiny Inc. and Destiny Cable Inc., both of which are likewise owned by the family of Joseph and Elena Lim.

"The Lim family has agreed to transfer its interests in the Destiny Group of SGI at acquisition cost, or for a return of investment without interest or charges, in exchange for approximately 1,049,872,029 SGI shares," Ligeralde said, SGI shares yesterday closed at P2.30 per share.

He said with the acquisition, the Destiny Group will be restructured so that the broadband cable infrastructure assets will be owned by DI and the franchise to operate cable facilities and the assets directly necessary for the franchise will be retained by DCI. DI, which will become a wholly-owned subsidiary of SGI, will thereafter lease its facilities to DCI.

SGI, in turn, will invest in bonds or warrants of the holding company, which will be convertible to 100 percent of the issue capital stock of DCI.

SGI, formerly known as United Paracale Mining Co., is primarily engaged in the manufacture, distribution, and export of consumer electronic products. It operates production facilities for the manufacture of TV, video, and audio under Sony and Aiwa labels. Last year, it has ventured into logistics and consumer financing business to help improve its dwindling sales.

The Destiny Group is engaged in the multimedia business. In June 1996, DCI obtained a 25-year franchise from the government to engage in cable TV, data and other businesses like high-speed Internet and leased line services, cable telephony, VSAT services, broadcast uplink and programming services.