Conglomerate Phinma Corp. is getting out of its strategic consulting business in the US under Fuld and Co. Inc. (Fuld US) to focus on opportunities in the Philippines and the rest of Southeast Asia.
In a disclosure to the Philippine Stock Exchange on Wednesday, Phinma said it had approved the sale of its 95.09 stake in Fuld US to Accretio Investments Pte. Ltd. for $3.62 million in cash.
Fuld US offers strategic planning, competitive intelligence and data-driven market insights to companies.
“The selling price was a negotiated amount which takes into account the company’s track record in the industry, its past performance and expected revenues and income,” the disclosure said.
Phinma also agreed to sign a nonsolicitation and noncompete clause for three years from closing date, covering the existing clients and current prospects of Fuld US. The transaction will still undergo due diligence.
Fuld and Co. (Philippines) Inc., a 100-percent owned subsidiary of Phinma, will continue to be owned by the conglomerate and will be renamed Integrative Competitive Intelligence Asia, Inc. (ICI Asia).
Under the terms of the transaction, ICI Asia can continue to use the brand “Omniscope.”
Fuld US will also settle its net payables to Phinma in the amount of around $700,000. Phinma expects to book a gain from the sale in the amount of P103,000.
The conglomerate said this transaction would allow it to “focus its efforts on Fuld Philippines as it develops new markets and opportunities in the Philippines and in Southeast Asia.”
Formerly Bacnotan Consolidated Industries Inc., Phinma was incorporated in 1957. Currently valued by the stock market at close to P3 billion, it is a holding company with investments in the education, steel products, housing, business process outsourcing and energy sectors.
Phinma’s other subsidiaries include: Union Galvasteel Corporation, which is into manufacturing and distribution of steel products; One Animate Ltd., a BPO firm focused on animation services; P&S Holdings Corp., which invests in real and personal properties; and Asian Plaza Inc., which leases real property.