The Philippine Stock Exchange Inc. (PSE) has delisted LFM Properties Corp. approved by way of introduction.
LFM Properties, a unit of Liberty Flour Mills Inc. (LFM), will list on the Small, Medium and Emerging Board of the PSE on November 9th.
The Company’s parent company distributed 10.35 billion common shares of LFM Properties as a dividend in kind to all of its shareholders as of December 18, 2020.
LFM shareholders will receive 69 shares of LFM Properties for each LFM share they hold.
LFM Properties will then list 25 billion shares of common stock at an initial listing price of 10.7 centavos each at launch.
After paying LFM’s real estate dividend of 41.40 percent of its shareholding, the Company will own 58.6 percent of the outstanding capital of LFM Properties.
The PSE’s listing rules begin by noting that where the securities of an unlisted issuer are distributed as dividends from a listed issuer to the shareholders of that listed issuer, the listing may be appropriate.
Liberty Flour was incorporated on December 26, 1958 to engage in the manufacture of flour and flour-related products.
LFM products consist primarily of El Superior, LFM Bakers, Pine Tree and LFM Soft branded baking flour products. Products are sold exclusively by Parity Values Inc., Trade Demands Corp. and Liberty Commodities Corp. distributed and marketed. LFM sells its products primarily on a wholesale basis, primarily to members of the baking and food industries across the country.
LFM Properties, on the other hand, is active in the office and commercial space leasing business, while its sister company Liberty Engineering Corp. is engaged in the sale, leasing and purchase of equipment and machinery.
In April, the company’s board of directors approved the purchase of 3.1 hectares of land in Lemery, Batangas, from eight different owners for a total price of 260 million pesos.