URC merges packaging materials subsidiary
Universal Robina Corp. today announced its board of directors has approved the revision of the plan to merge CFC Clubhouse Property Inc., a wholly owned subsidiary, with and into URC with the latter as the surviving entity.
In a disclosure to the stock exchange, URC said CCPI is one of its major suppliers of flexible packaging materials for its snacks and beverages division. The merger will bring down URC’s costs with the economies of scale it achieves and improves efficiency.
CCPI was set up in 2007 and is currently expanding its capacity to accommodate URC’s increased demand for dry laminated and extruded wrappers.
CCPI has a paid up capital of P461 million. The merger will require the approval of the stockholders of both companies and that of the Securities and Exchange Commission.
Under the merger plan, one share of CCPI is equivalent to 5.0435 shares of URC which is based on the book value of CCPI’s net assets as of September 30, 2016. Some 500,000 common shares of CCPI with a par value of P1 per share will be swapped with 2.52 million common shares of URC.
The merger takes effect once the SEC issues a certificate approving the merger.