LMG sale scuttled

The Sytin and Siao groups had decided to terminate the share purchase agreement forged last 6 June for LMG Corp. to sell a 67 percent share of the company worth P400 million to technology venture Maxwealth Infinity Holdings Corp.

LMG Corp., which used to engage in the chemical business, is now a shell company. Maxwealth hopes to use its Philippine Stock Exchange slot as a vehicle for a backdoor listing.

LMG was advised by its key shareholders that on 31 August, the buyer was sent a Notice of Termination of the Agreement.

Under the agreement, Maxwell Infinity agreed to purchase 129,674,598 common shares registered under the name of Ann Marrieta Sytin, Robinson Siao and Value Quest Securities, Corp.

The Long Stop Date that was agreed on for the completion and closing of the transaction was 31 August.

The failure to close the transaction on the date is a ground for termination of the agreement.

Based on LMG's report to the stock exchange, the closing contemplated in the agreement has not occurred.

"The parties signified their intention to mutually terminate the agreement. In view thereof, the sellers exercised their right to terminate the agreement under Sections 4.6 and 9.1 of the agreement," LMG said.

"Considering the termination of the agreement, the corporation is no longer involved in any acquisition of its shares. Hence, the corporation is requesting the PSE to lift the trading suspension imposed on the shares of the corporation," the company petitioned.