Real estate firms Cityland Development Corp. and City and Land Developers Inc. are merging. The surviving entity will be Cityland Development.
Cityland owns 49.73 percent of City and Land.
The two companies told the Philippine Stock Exchange that their respective Board of Directors have approved of the plan, meant to “ streamline the corporate structure, improve operational efficiency, eliminate redundancies and enhance overall shareholder value.
The planned merger will be subject to the approval of the stockholders of both companies.
Cityland shareholders will meet on October 9 while City and Land shareholders will meet on on October 10.
Cityland said the merger will allow for a “simplified ownership structure, better operational coordination, enhanced business focus, and reduced overall corporate costs.”
Under the merger plan, Cityland will issue 1.39 billion primary common shares to City and Land stockholders as consideration for the merger, at an exchange ratio of 0.88 Cityland shares for every City and Land shares they own.
“The company cannot determine yet the timetable for the implementation of the merger as such shall still be subject for corporate and regulatory approvals,” Cityland said.
