Vol. XXI, No. 169 [ Business World Online ]
Monday, March 31, 2008 | MANILA, PHILIPPINES
THE SECURITIES and Exchange Commission has approved the merger of The Resource Group (TRG) Philippines, Inc. and wholly owned subsidiary Callworx Philippines, Inc., documents from the corporate regulator showed.
In a plan of merger executed last December, the board of directors of the two business process outsourcing (BPO) companies said the merger would result in economy of scale and efficiency of operations. TRG Philippines will be the surviving entity.
"The companies have determined that it is to their best interest to merge into one corporation and that such merger will be mutually advantageous and will redound to the benefit and welfare of TRG Philippines and Callworx and their respective shareholders Considering Callworx is a wholly owned subsidiary of TRG and both corporations are engaged in the same line of business, a duplication of functions and activities of the constituent corporation will be eliminated," it said.
Capitalized at P150 million, TRG Philippines has negative shareholders equity of P56.72 million since liabilities exceeded assets, at P146.72 million and P90 million, respectively, as of September.
Callworx has lower capitalization of P5 million. It also has negative shareholders equity of P84.78 million as a result of a P95.64-million liability and only P15.86 million in assets.
"Since on the effective date of merger, Callworx is wholly owned by TRG, no TRG shares will be issued to TRG as stockholder of the absorbed corporation pursuant to sound corporate practice," the merger plan said.
In 2006, TRG, a Washington-based business process outsourcing firm, inaugurated a 36,000-square feet and four-floor facility at the Hanston Building in Ortigas Center, with 850 seats and 700 workers. Callworx had 220 seats. — Ruby Anne M. Rubio
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