The Philippine stock exchange said trading in shares of Fortune Cement Corp is to resume today after the company submitted additional information on its planned merger with another Philippine cement maker, Continental Operating Corp. The stock has been suspended since June 15 and last closed at 0.62 pesos.
Fortune Cement, which will be the surviving entity, said the merger with Continental will improve cost efficiencies and widen the two companies’ market reach on the main Philippine island of Luzon. Continental is a unit of another listed company, Republic Cement Corp. The merger will involve the issuance of about 1.12bn common shares of Fortune Cement to Republic Cement in exchange for all the issued and outstanding shares of Continental.