JG Summit to merge with three subsidiaries
JG Summit Holdings, Inc. will absorb three wholly owned subsidiaries to increase operating efficiency, the listed conglomerate told the local bourse yesterday.
“The Board of Directors of JG Summit has approved the merger of Litton Mills, Inc., JG Cement Corporation and Premiere Printing Company, Inc. with and into the Corporation,” the Gokongwei-led company said in a disclosure.
The merger aims to “integrate administrative processes; to enhance operating efficiencies and economies and allow productive usage of resources; and to increase financial strength through pooling of resources and attain more favorable financing and credit facilities.”
Shareholders must first approve the merger during the firm’s annual meeting on June 28.
Units of JG Summit, one of the most diversified conglomerates in the country, include snack and beverage giant Universal Robina Corp., budget carrier Cebu Air, Inc. and property and mall developer Robinsons Land Corp.
Shares in JG Summit, whose profits ballooned to P8.55 billion last year on the back of mark-to-market gains in financial instruments, closed at P10.00 each yesterday from P9.40 on Thursday.