Loyola Plans to sell 32% interest in mortuary unit

MANILA, Philippines — Pre-need firm Loyola Plans Consolidated Inc. is selling its 32-percent share in a mortuary services firm months after it was placed under liquidation.

In its latest notice, the Insurance Commission (IC) said Loyola Plans is offering for sale its 804,898 shares of stock in Loyola Memorial Chapels and Crematorium Inc. (LMCCI).

This comprises 32.19 percent of the outstanding shares of stock of LMCCI subject to the right of first refusal of the company.

Established in 1969, LMCCI is primarily involved in memorial and cremation services.

It was in end-September when the IC placed Loyola Plans under liquidation by the government which effectively terminated its insurance business by cancelling all of its insurance policies and by not issuing any new or renewal policies.

It was also in March this year when IC placed Loyola Plans under conservatorship due to its inability to pay off benefits and debts.

As such, the IC is inviting all interested parties to send their letter of intent or proposed bids within 30 days from January 7, 2024.

IC noted that the sale of the shares is on an “as-is-where-is” basis with the payment term on a cash basis.

The minimum offer price must also not be less than its book value or current market value as determined by IC or other relevant agency.

The sale will be net of all applicable taxes, transfer costs, and fees which will be for the account of the buyers, in order to maximize the value of Loyola Plans’ planholders.

The IC said LMCCI has the right of first refusal and can match any offer made by interested parties, should it choose to do so.

During the nine-month period, the pre-need industry saw its net income return to profitability at P1.79 billion amid an increase in the number of plans sold.

Pre-need firms sold close to 600,000 pre-need plans, most of which are memorial plans.