Friday, October 19, 2018
  • share this

Sytin scion buys majority stake in chemicals trader LMG

/ 05:12 AM October 24, 2017

The Chemphil group has sold a controlling stake in subsidiary LMG Chemicals Corp., a shell company deemed suitable for backdoor listing, to a businessman involved in industrial auctions.

In a disclosure to the Philippine Stock Exchange on Monday, LMG said its principal shareholder Chemical Industries of the Philippines Inc. (Chemphil) has signed a deal to sell a 65.92-percent stake in LMG to United Auctioneers Inc. founder and chief executive Dominic Sytin and ex-banker Robinson Siao for P405 million.


The closing and completion of the sale would still be subject to certain conditions in accordance with the requirements of the Securities Regulation Code, including a tender offer from Sytin and Siao.

United Auctioneers is an industrial auction company operating in Subic Bay and with offices in Davao. The firm oversees a marketplace for industrial machines, trucks and other miscellaneous equipment from Japan, the United States, Europe and other Asian countries.


Based on its website, United Auctioneers plans to expand operations throughout the Asia Pacific region in the next ten years.

Read more:
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

The Sytin family is also involved in automotive assembly and distribution business using the Chinese brand Foton. Last year, a P1.2-billion Foton assembly plant was inaugurated in Clark. Dominic Sytin chairs Foton Philippines.

The family is also into mobile distribution, having introduced to local consumers the “Happy Mobile” brand as a low-cost smart phone alternative, industry sources said.

Shares of LMG fell by 9.18 percent to close at P4.65 each, giving the company a market capitalization of P990.95 million.

LMG was previously an industrial chemicals manufacturer and distributor. In 2007, LMG transferred its acid plant and tank farm properties to wholly owned subsidiaries, Chemphil Manufacturing Corp. and LMG Land Development Corp. “for better management and monitoring.” Starting 2009, upon the divestment of the subsidiaries, the company’s operations shifted to trading.

The company has divested more assets over the years. As a result, LMG is now only engaged in the trading of chemical products such as caustic soda, sulfur and other industrial chemicals.


Read Next
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, Dominic Sytin, Foton Philippines, Happy Mobile, LMG Chemicals Corp., News, Robinson Siao, Sytin
For feedback, complaints, or inquiries, contact us.

© Copyright 1997-2018 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.