THE parent firm of listed sugar conglomerate Roxas Holdings Inc., said it will increase its capital stock as part of the terms of the merger between Roxas & Co. Inc. with subsidiary CADP Group Corp., the surviving entity.

The surviving company will be named Roxas and Holding Company Inc (RHCI).

Documents from the Securities and Exchange Commission show that RHCI will hike its capital stock to P3,375,000 billion divided into same number of shares with a par value of P1 per share from P1.96 billion. The plan was approved by regulators on June 23. The Roxas group earlier said it is strengthening its sugar-milling and refining subsidiaries Central Azucarera Don Pedro Inc. and Central Azucarera de La Carlota Inc. to raise its competitive advantage against low-priced imported sugar entering the country by 2010.

Recently, the company underwent corporate restructuring when subsidiary Roxas Holdings purchased CADP’s sugar operations for P3.8 billion. As a result, RHCI became the parent of CADP group corp.

Roxas Holdings also said it is spending more than P1 billion for the construction of an ethanol plant in Negros. The plant is expected to produce 100,000 liters a day. Production is expected to reach 30 million liters every year for the next 10 years.

RHCI said after the merger, the CADP group will have interests in both sugar arm Roxas Holdings and RHCI’s real-estate business.

For the seven months ending on January 31, the Roxas group reported a net income of P24,415,231. Revenues were reported at P48.03 million.

For the same period, subsidiaries Roxas Holdings Inc and CADP reported a net income of P23.17 million and P10.85 million, respectively.

The parent company reported nearly P40 million in cash at the end of January.