MANILA, Philippines—The Makati Regional Trial Court has cleared the legal hurdle to Chemical Industries of the Philippines Inc.’s (CIP) sale of a 66 percent stake in subsidiary LMG Chemicals Corp. by quashing the petition of a dissenting shareholder bloc.
In a disclosure to the Philippine Stock Exchange on Monday, CIP and LMG disclosed that they had received an order from the court dated March 13 dismissing “for lack of merit” the petition filed by shareholders represented by RG Holdings Corp. and Ramon Garcia.
The companies disclosed that the court had denied Garcia’s application for temporary restraint order or a preliminary injunction seeking to stop the execution of the sale of about 127.58 million LMG shares owned by CIP and the tender offer by Norman Ng, the buyer of the shares.
The court likewise dismissed a petition to stop any other act to consummate the sale or disposition of the LMG shares, the disclosure said.
The transaction was led by the “majority” bloc of Antonio Garcia, who chairs both Chemphil and LMG. The petitioner, Ramon, and Antonio Garcia are estranged siblings.
Chemphil has long been attempting to sell the shell company of LMG. It plans to use proceeds to service debts and working requirements.—Doris C. Dumlao