PRYCE Corp. said Thursday it was transferring its pharmaceutical business to its retirement fund through a transaction valued at P7.5 million as part of efforts to streamline operations.
In a disclosure, Pryce said the transaction “will formally drop the pharmaceutical products segment from its core group of companies.”
After securing the necessary board approval, Pryce said it executed a deed of assignment and transfer of shares on Sept. 30, effectively transferring its entire 75-percent stake in subsidiary Pryce Pharmaceuticals Inc. to PGI Retirement Fund Inc.
The transaction covers 7.5 million shares in Pryce Pharmaceuticals, equivalent to 75 percent of the subsidiary’s outstanding shares, at a par value of P1 per share as stated in Pryce Pharmaceuticals’ articles of incorporation.
Pryce said the consideration of P7.5 million will be paid in cash within seven calendar days.
Pryce Pharmaceuticals is a domestic corporation engaged in the wholesale and retail trading of pharmaceutical products. Under the deal, its shares will be transferred to PGI Retirement Fund, which has a relationship with Pryce through its directors and corporate secretary.
Pryce said three of its directors were members of the board of trustees of PGI Retirement Fund. Its corporate secretary also serves as the retirement fund’s corporate secretary.
The company said the move would allow it to focus more on its key businesses of liquefied petroleum gas and industrial gases, and on its Mindanao-based real estate and memorial park operations.
“Minimal changes to the Issuer’s financial condition will be expected after the transaction,” Pryce said in the disclosure.
The company said there were no conditions precedent to the closing of the transaction and no other salient terms.
Pryce has 1.88 billion outstanding common shares and 143.95 million treasury shares, according to its latest disclosure.
Shares of the company surged P2.38, or 14.42 percent, to close at P18.88 each on Thursday.
