Manila Bulletin

Firm buys 67% of LMG for ₱402 M; backdoor listing seen

By JAMES LOYOLA

The majority stake of 67 percent in publicly-listed LMG Corporation has been acquired by Maxwealth Infinity Holdings Corporation (MIHC) for ₱402 million for use as a backdoor-listing vehicle.

In a disclosure to the Philippine Stock Exchange, LMG said it was advised by its principal shareholders, Ann Marrieta L. Sytin, Robinson W. Siao, and Value Quest Securities, Corp. on behalf of Rommel L. Sytin, Eduardo H. Yap, and Brandon Derick S. Sy (the Sellers) of the sale.

On June 6, 2023, the Sellers have entered into a Share Purchase Agreement with Maxwealth for the sale of the Sellers’ combined stake of 129.67 million common shares of LMG at ₱3.10 per share.

Sytin sold 98.58 million shares for ₱305.62 million, Siao sold 29 million shares for ₱89.9 million, while Value Quest sold 2.09 million shares for ₱6.48 million for a total of ₱402 million.

“The Sellers decided to sell their shares in the Corporation to pursue different business goals, which are not aligned with the objectives of a publicly listed company,” said LMG.

LMG was also advised by the Sellers that the closing of the transaction and the full payment of the Corporation’s shares held by the Sellers are subject to, among others, the Buyer’s successful conduct and completion of a tender offer of the shares held by the other shareholders of the Corporation.

The payment by the Buyer of the tender offer price for any Tender Offer Shares shall be done simultaneously with the payment for the shares of the Corporation held by the Sellers.

The parties intend to conduct the tender offer and close the transaction within the next 60 days.

Based on its website, Maxwealth is headed by its Chairman Alfonso Huang who is “Honorary Consul of Guinea-bissau to the Philippines, 2022 Philippine Charity Ambassador, and ACCA Association of Chartered Certified Accountants Member.”

Listed are only two other officers, senior vice presidents Landy Lan and Christian Li. Lan is a “Senior Mobile Internet Marketer, Mobile Internet Payment Expert, Consumer Finance Expert, and Marketing Consultant.

Li has a Double Major in Economics and Management at De La Salle University and is “Familiar with financial markets in Greater China (including Mainland China, Hong Kong and Taiwan)” and has “more than 10 years of experience in the financial industry.”

Maxwealth was founded and established in 2021. In 2022, it ventured into the Financial Technology industry in the Philippines with the goal of making the said industry more inclusive by promoting finance, remittances, loans and other economic activities.

The company has also set its sights on accelerating economic development and helping individuals and MSMES successfully enter the Philippine market.

In light of this, MIHC has been working on providing agricultural financial services and an e-wallet project that includes an online payment system.

MIHC has strategically ventured into the Financial Technology industry in the Philippines with the objective of promoting finance, remittances, loans, and other economic activities in a more inclusive manner.

“Our aim is to accelerate economic development and help individuals and MSMES successfully penetrate the Philippine market. To achieve this, we have been actively working on providing agricultural financial services and an e-wallet project that incorporates an efficient online payment system,” the firm said.

Business News

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2023-06-08T07:00:00.0000000Z

2023-06-08T07:00:00.0000000Z

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