MANILA -The Sytin and Siao families struck a deal to sell control of listed shell company LMG Corp. to Maxwealth Infinity Holdings Corp. of businessman Alfonso Huang for P402 million.
LMG said in a stock exchange filing on Wednesday its principal shareholders were selling their combined 67 percent in LMG, which they acquired in 2017.
LMG has no current business operations. For its part, Maxwealth, which was established in 2021, claims to have investments in financial technology, which could eventually be folded into LMG.
“The buyer’s current investments include interests in various financial and information technology companies,” LMG said in the disclosure announcing the deal.
“Moving forward, the buyer intends to invest in the hospitality industry (i.e., leisure and resort businesses, as well as in hotels, restaurants), and the construction industry, consistent with its plan of diversifying its portfolio across various industries,” it added.
Suspended
LMG shares were placed under a trading suspension on Wednesday, pending the release of more details. Its shares last traded at P3.35 each, valuing the company at nearly P650 million, data from the stock exchange showed.
Huang, the current chair of Maxwealth, was described as an honorary consul of Guinea-Bissau to the Philippines, according to the company’s website.
Documents filed with the Securities and Exchange Commission (SEC) showed the company was led and principally controlled by Xiang Huang of Saint Lucia, an eastern Caribbean country.
Maxwealth had total assets of P12.3 million and no liabilities in 2021, its financial documents to the SEC showed. It also ended that year with a loss of P230,790 and had no revenues.
Maxwealth said on its website it was established to “impact and contribute to the Philippine economy through strategic investments and industry projects.”
“As the Philippine marketplace continues to evolve at a remarkable pace, [Maxwealth] is well-positioned to capitalize on emerging opportunities locally, regionally and globally. [Maxwealth] has always been a firm believer in the potential of the Philippine economy,” it added. INQ