Lopezes acquire dormant firm for backdoor listing

Lopez Inc., the holding company for the various business interests of the Lopez family, has acquired majority control of dormant mining firm City Resources (Phil.) Corp. (CRC) to prepare for the backdoor listing of one of its affiliates or new ventures.

In a disclosure to the Philippine Stock Exchange, CRC said Lopez Inc. has acquired the right to purchase over 87 million shares of the company held by Starfield Holdings Inc.

The stocks, representing fully paid and partially paid shares, comprise 91 percent of the total outstanding capital of CRC.

There were no price valuations given for the proposed transaction. CRC has 95 million in outstanding shares from its authorized capital stock of 335 million shares, with a par value of P1 each. In 1996, CRC’s market capitalization stood at P807.5 million.

"Lopez Inc. intends to use the company as the listed holding company of one of its affiliates or its new ventures," CRC said.

Before entering the stock exchange, however, the Lopez group will first revive and transform the operations of CRC as a holding company by transferring the assets of the potential listing unit and taking over its management within the next six months.

Lopez Inc. will also seek the lifting of CRC’s trading suspension, which has been in effect since November 1996 due to non-compliance of bourse requirements like the submission of financial sheets.

In addition, Lopez Inc. will conduct a tender offer to the remaining shareholders of CRC as required by the current Securities Regulation Code.

There are now several Lopez-controlled firms listed at the PSE, led by main holding unit Benpres Holdings, flagship ABS-CBN Broadcasting Corp. and its Philippine Depository Receipts, power utility Manila Electric Co. and energy holding firm First Philippine Holdings Corp.