The consolidation of ownership and management of Edsa Properties Philippines, Inc. (EPHI) and Kuok Philippine Properties, Inc. (KPPI) is now complete, EPHI announced recently.

Real estate firm KPPI and property developer EPHI have entered into the definitive agreement to fuse a merger which will be mutually advantageous to the merging entities. The merger will result in increased financial strength through pooling of resources, increased operating economies and reduction of expenses. This merger will also create a wider shareholder base and deliver higher share prices.

Under the terms of the merger, EPHI will survive the merger and assume all the obligations and undertakings of KPPI, the absorbed entity. The merger will allow EPHI to broaden its product offering as it will have a free hand in utilizing KPPI's prime properties. Moreover, it will increase EPHI’s capital stock by at least P500 million.

The combined entity will be known as Shang Properties, Inc. to be led by lawyer Juan Andres D. Bautista as chief executive officer. Edward Kuok Khoon Loong will retain his title as chairman of the merged companies.

In a statement, Bautista said: "Shang Properties has an exciting future driven by opportunities the merger will bring. It is an entity with regional links, strong sponsors, and committed management resourced with skilled professionals. It has a strategic vision to become a leading entity in the real estate sector. This company will be shareholder-focused and committed to driving performance with high levels of corporate governance and citizenship. Shang Properties is dedicated to becoming the premier developer and manager of prime properties in the Philippines."

Bautista said the merger is a strategic move aimed at focusing investor interest on only one listed company.

The newly formed company Shang Properties, Inc. has started the development and construction of the P3.5 billion-worth St. Francis Shangri-La Place in Ortigas, which is set to be one of the highest residential buildings in the metro. The Enterprise Center, Shangri-La Plaza Mall, and The Shang Grand Tower are built and managed by Shang Properties.