PHL Tobacco Acquires More Shares in Subsidiary

Source from:  Business Mirror  01/23/2014

Philippine　Tobacco Flue-Curing & Redrying Corp. (PTFCRC) plans to buy additional interests in Baesa Redevelopment Center (BRC) from L'Hirondelle Holdings Inc. to make it a wholly owned subsidiary.

The listed company disclosed on Wednesday with the Philippine Stock Exchange that its board of directors approved the purchase of a 40-percent stake in BRC at a book value as of August 31, 2013.

The acquisition of an additional 18,800 shares will increase to 100 percent PTFCRC's interest in BRC.

PTFCRC President Carlos G. Dominguez has been authorized by the board of directors to negotiate the conditions of the said transaction, as well as to sign, execute, deliver, receive and receipt any and all contracts, documents and instruments required on its behalf.

The board also green-lighted the amendments to the articles of incorporation of PTFCRC allowing the change in the company's corporate name to PTFC Redevelopment Corp. and its primary purpose to become a real-estate firm.

These changes, said PTFCRC Corporate Secretary Patricia O. Bunye, are expected to improve the company's financial standing.

PTFCRC has been in operation for more than 50 years, but stopped its flue-curing business after incurring losses resulting from the declining export and domestic prices of tobacco. The flue-curing facilities have since been made available to third parties on short-term lease or tolling arrangements.

PTFCRC has reported an increase in revenues as per the consolidated statements of comprehensive income for nine months ended May 31, 2013 and May 31, 2012. Due to the higher occupancy in warehouses 2 to 5 in Baesa, Quezon City, and new tenants in Baesa Town Center, the company's top line as of end-May 2013 amounted to P80.92 million, compared with P63.75 million recorded in the same period two years ago.

Gross profit also grew from P22.3 million to P36.5 million due to the increase in revenues. Enditem