Liberty Flour Mills considers land sale to subsidiary

LISTED firm Liberty Flour Mills, Inc. (LFM)  is entering a memorandum of understanding (MoU) with its subsidiary for the potential sale of a building and the 1,009-square meter (sq.m.) lot where it sits.

In a disclosure to the Philippine Stock Exchange, LFM said its board of directors had approved the execution of an MoU with LFM Properties Corp. (LPC) for the sale of the property located at 835 A. Arnaiz Ave., Makati City.

According to the company, the purchase price will be based on the issuance of a fairness opinion of an independent third-party financial adviser that will be selected by LFM and LPC.

LFM said that it plans to execute the deed of sale with its subsidiary once it secured a favorable recommendation from the chosen independent-third party financial adviser.

“The company and LPC aim to enter and execute a deed of sale in the first quarter of 2023,” LFM said.

LFM said the transaction will be open for a property-for-share swap option and both companies commit to comply with the 20% public float policy.

“Both parties commit and accept to issue shares that will be in compliance with the 20% public float policy and with all the necessary approval from the relevant regulators,” it said.

Meanwhile, LFM’s board of directors said it passed and adopted a resolution for a cash dividend declaration in a meeting held on Nov. 28.

The declared cash dividend will be 3% of the subscribed capital of LFM, that is 30 centavos per share. Its record date will be on Dec. 16 and will be payable on Dec. 28.

LFM manufactures flour-related products. It has two subsidiaries: LPC, which is a real estate company, and Liberty Engineering Corp., which sells equipment and machinery.

On the stock market on Tuesday, shares in LFM closed unchanged at P16.72 apiece, while shares in LPC declined by 1.28% to P0.154 apiece. — Justine Irish D. Tabile