Universal Records, Dyna Products merger OK’d

MANILA, Philippines - The local music industry, whose growth and development have been hampered by piracy, lost the country’s oldest independent record and music entertainment company two weeks ago. The corporate regulator approved on Dec. 9 the merger of sister firms Universal Records, Inc. and Dyna Products, Inc., the only remnant of the pioneering local music companies of the 1950s that include Villar Records and Mico Records. Universal Records, led by businessman James G. Dy, is the surviving corporation. Documents filed with the Securities and Exchange Commission showed that the companies decided to merge to cut costs and improve efficiency. "Considering that the constituent companies all own, hold and manage various assets for the same beneficial owner, their respective board of directors and stockholders deemed it necessary and advisable to merge [these] into one," Universal Records said. Universal Records will issue P58.88 million worth of shares to Dyna’s 14 stockholders. It will also assume Dyna’s assets and liabilities. Company officials could not be reached for details. Like other intellectual property-dependent sectors, the local music industry has been battered by piracy, with legitimate players estimated to only account for a quarter of P2 billion in annual sales. Based on the Philippine Association of the Record Industry Web site, Dyna once had in its roster artists like 1950s mystery singer Cecil Lloyd, Jukebox King Fred Panopio, Armida Siguion-Reyna, Asia’s Queen of Songs Pilita Corrales, Perry Como sing-alike Diomedes Maturan, and some of the founding fathers of Pinoy rock. Universal Records has in its stable artists and bands like Gary Valenciano, Jose Mari Chan, the Apo Hiking Society, Parokya Ni Edgar, Orange and Lemons and Itchyworms. — Don Gil K. Carreon, BusinessWorld