MANILA, Philippines – (UPDATE) JG Summit Holdings Inc. of the Gokongwei group has obtained approval from the Securities and Exchange Commission to consolidate three subsidiaries engaged in textile milling, cement and print businesses into its operations to boost group-wide efficiency.
In a disclosure to the Philippine Stock Exchange on Friday, JG Summit said the corporate regulator had approved the merger of Litton Mills Inc., JG Cement Corp. and Premiere Printing Co. Inc. with and into the conglomerate.
According to the firm, the merger and consolidation of these wholly owned subsidiaries into its operations were intended to integrate administrative processes; enhance operating efficiencies and economies and allow productive usage of resources; and increase financial strength through pooling of resources and to attain more favorable financing and credit facilities.
JG Summit is a holding company for a group of companies which include: Universal Robina Corp. (branded consumer foods, agro-industrial and commodity food products); Robinsons Land Corp. (property development and hotel management); Cebu Air Inc. (air transportation); JG Summit Petrochemicals Corp. (petrochemicals); and Robinsons Savings Bank (banking services).
The conglomerate earlier entered into a deal to give up its controlling stake in telecom unit Digital Telecommunications Inc. to dominant player Philippine Long Distance Telephone Co. in exchange for a minority stake in the latter.
Earlier, the SEC had also approved the consolidation of the Gokongweis’ banking units: Robinsons Bank Corp. (formerly the local unit of the Royal Bank of Scotland) and Robinsons Savings Bank Corp.,with the latter as the surviving entity.