UEM changes name, goes into power and infra

Manila Standard Today

UEM Development Philippines Inc. said its board approved a plan to change its name to Synergy 21 Grid & Development Corp. and to include power and infrastructure among its primary business purposes.

UEM said its board also approved a plan to create an additional 100 million common shares and 65 million non-voting preferred shares at a par value of P1 apiece. It plans to hold a public offering for the preferred shares and will swap at least some of the new common shares for shares in OneTaipan Holdings Inc. and Pacifica21 Holdings, it said in a disclosure to the stock exchange.

UEM, a listed company in which the eldest son of retail tycoon Henry Sy owns 45 percent, is increasing its authorized capital stock to P215 million from P50 million in preparation for the planned share swap and public offering.

OneTaipan, controlled by Sy, owns 30 percent of National Grid Corp. of the Philippines after buying out the group of Monte Oro Resources for $350 million. Pacifica21 is owned by businessman Robert Coyiuto.

Sy is also vice chairman and chief executive of SM Development Corp. and vice chairman of SM Investments Corp. The SM group’s chain of malls is one of the largest consumers of power in the Philippines.

Sy earlier said he would use UEM as one of his corporate vehicles for possible investments in infrastructure and public utilities.

The PSE suspended the trading of UEM shares following these corporate moves to determine if the board decisions could be covered by the rules of backdoor listing.

Rules state that a backdoor listing will occur when a public company acquires, merges or combines with an unlisted firm.

A backdoor listing can also develop when a listed company is acquired by, merged or combined with an unlisted firm and which development results in a substantial change in the businesses, membership of the board of directors or voting structure of the listed company.

The PSE said the trading suspension would stay until such time the company provided the exchange with comprehensive corporate disclosure containing the complete details of the transactions.

Share price of UEM closed at P65 Friday. Jenniffer B. Austria, Bloomberg