City and Land Developers, CDC gear up for merger

MANILA, Philippines —  Listed real estate companies City and Land Developers Inc. and Cityland Development Corp. (CDC) are gearing up for a merger, with the latter as the surviving entity, in a move to streamline corporate structure and boost operational efficiency.

In a stock exchange filing, CDC said that its board approved a merger plan with its subsidiary, City and Land Developers, in an internal restructuring to eliminate redundancies and enhance shareholder value.

CDC owns a 49.73-percent stake in City and Land Developers, with some common directors and officers.

The company said it would issue 1.39 billion common shares to the stockholders of City and Land Developers as consideration for the merger, per the agreed exchange ratio.

CDC will increase its authorized capital stock from five billion to seven billion shares to provide for the issuance of additional shares necessary to effect the swap.

According to the CDC, the merger is still subject to approval from stockholders and regulatory agencies.

“The merger is aligned with the companies’ business direction as it is intended to streamline operations, eliminate duplication of functions and achieve cost savings and other economic efficiencies through the integration of both companies,” CDC said.

CDC will absorb City and Land Developers’ assets, liabilities and rights, resulting in an expanded asset base and equity.

The combined entity is expected to strengthen its financial position, improve capital efficiency and enhance shareholder value through consolidated revenues and optimized resource utilization.

“By consolidating the businesses under CDC as the surviving entity, the merger will allow for a simplified ownership structure, better operational coordination, enhanced business focus and reduced overall corporate costs,” it said.

The merger also supports both firms’ strategic objectives to reinforce the surviving entity’s position in the real estate industry by enabling it to better respond to market opportunities with greater financial and operational flexibility.

CDC will assume all ongoing projects and obligations of City and Land Developers to ensure business continuity and complete protection for creditors and stakeholders.