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RLC absorbs two subsidiaries

Posted on February 22, 2012 11:02:10 PM [ BusinessWorld Online ]

GOKONGWEI-LED property firm Robinsons Land Corp. (RLC) has moved to merge two of its wholly-owned subsidiaries as part of efforts to streamline the company’s operations and boost financial productivity.

Robinsons Land’s board of directors decided to fold in Robinsons Inn, Inc. and Robinsons Realty and Management Corp. into Robinsons Land, pending approval at the company’s annual stockholders meeting on April 18, the disclosure read.

The proposed merger is seen to “integrate administrative processes and eliminate the duplication of functions, attain greater efficiency and economy in the management of [the subsidiaries’] operations and allow productive usage of resources, and increase financial strength and creditworthiness,” Robinsons Land said.

From four wholly-owned subsidiaries, Robinsons Land will only have two left should the merger push through: Robinsons (Cayman) Ltd. and Robinsons Properties Marketing and Management Corp.

Robinsons Land is the property arm of listed conglomerate JG Summit Holdings, Inc.

It has built 29 malls, 33 residential projects, eight office buildings, and five hotels as of end-September last year.

The company has allotted P13 billion for capital expenditures for the 2012 fiscal year.

More than 60% of the funding will go to malls, office buildings, and hotels, while the remainder will be earmarked for residential condominiums and housing units, the company said.

Earlier this year, Robinsons Land further expanded its budget hotel operations to the provinces by opening a branch in Puerto Princesa City, Palawan, the company’s first branch outside Metro Manila after Cybergate Plaza in Mandaluyong City. -- Franz Jonathan G. de la Fuente

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