Puregold Offers P16.5B For S&R

MANILA, Philippines - Puregold Price Club, Inc. is acquiring the chain of S&R Membership Shopping clubs from the family of common controlling shareholder Lucio Co for P16.5 billion.

In a disclosure to the Philippine Stock Exchange, Puregold said its board of directors approved the submission of a binding offer to acquire 100 percent of the equity of Kareila Management Corporation.

Kareila, a company wholly owned by the Co Family, owns and operates the S&R membership shopping clubs in the Philippines.

The proposed acquisition will be through a share for share swap, with Puregold offering 450 of its shares for every outstanding Kareila share based on the closing share price of P21.50 per Puregold share last March 26, the day prior to the approval of the transaction by the Puregold board.

The proposed transaction will result in the issuance of about 766 million new shares in Puregold to the Co family and post completion, the Co family will own 77 percent of outstanding shares of Puregold.

The transaction is subject to approval by Puregold stockholders and will be voted upon at Puregold's annual stockholders' meeting on May 8, 2012.

Punongbayan and Araullo has provided a fairness opinion on the acquisition.

The S&R business was originally established in the Philippines in the

year 2000 as a joint venture controlled by US company PriceSmart. Following a sale of PriceSmart's stake in the joint venture to their joint venture partners in 2005, the business was subsequently acquired by the Co Family in 2006.

S&R is modeled after successful warehouse membership shopping chains in the US such as Costco. It operates 6 membership shopping stores in the Philippines with 4 stores in Metro Manila, 1 store in Cebu and the newest store in Pampanga which opened in November 2011.

S&R had total revenues of P4.1 billion in 2010 and P6.6 billion in 2011 implying growth of 61 percent, driven by the full year operations of the new store in Cebu as well as same store sales growth of about 39 percent.

In 2011, gross profit of S&R was P1.2 billion, implying a gross margin of 18.3 percent, EBITDA was P976 million implying an EBITDA margin of 14.7 percentand net income was P660 million, for a net margin of 9.9 percent.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Nonviolent disciplining of kids pushed

    Child rights advocates called on senators to pass and strongly endorse a law that will institutionalize positive and nonviolent methods of disciplining children.The Child Rights Network (CRN), Plan International Philippines (PIP), Philippine Legislators’ Committee on Population and Development (PLPCD), and Lihok Pilipinas Foundation led the call for the enactment of the Positive Discipline Bill.Several Quezon City Council members led by Majority Floor Leader Jesus Manuel Suntay, Victor Ferrer …

  • Method to their madness

    [caption id="attachment_256768" align="alignright" width="212"] Illustration by Rod Cañalita[/caption] EMMANUEL PORTUGAL Country Manager for the Philippines, VMware I look after the garden. I’d like to think that I have a green thumb—no plants have died so far! The ones I like now that I planted a few months ago is the Blue Iris. Like the town in the movie, my Blue Iris shows up in the morning and only appears for one day. …

  • JGFP Summer Tour on today

    The summer tour for local junior golfers kicks off with the holding of the ICTSI-JGFP Baguio Junior Open today and tomorrow at the treacherous Baguio Country Club course in Baguio.Sixty players aged 6 to 17 years old are entered in the 36-hole tourney serving as the opening leg of the summer circuit organized by the Junior Golf Foundation of the Philippines with the International Container Terminal Services, Inc. Foundation as main sponsor. ... …

  • PH now market ready to absorb infra bonds

    The Philippine market is now ready to absorb infrastructure bonds that will be issued by private companies amid a growing pipeline of infra-related projects under the government’s Public-Private Partnership (PPP) program. President Benigno Aquino III last week said the government is still committed to spend more on the country’s infrastructure, with 16 PPP projects currently on the pipeline and nine that have already been awarded. Over the years, some of the country’s biggest infrastructure …

  • Filipinos are saving more – BSP survey

    More Filipinos have the extra cash to save for that proverbial rainy day, according to the Bangko Sentral ng Philippines (BSP). Based on a quarterly survey on consumer confidence, domestic households with savings have the means to increase family reserves and to bring up the amount to historical highs. The central bank said improved family income, a generally positive outlook on the economy, inflation and foreign exchange rates encouraged saving behavior during the first three months of 2015. …

  • AXA Philippines growing alongside its parent firm

    Philippine AXA Life Insurance Corp. is growing side by side with its parent firm, global insurance firm AXA, after posting significant growth in its total premium income amid an increasing market share in the country. A statement showed that in the Philippines, multi-billion firm AXA Group saw P18.35 billion in total premium income. The local entity of AXA, AXA Philippines is a joint venture between AXA Group and the Metrobank Group. In 2014, it saw an increase in market share to 11.6 …

  • End to traffic jam in sight? Japan to lend P4B to PHL for road projects

    The Japanese government will be providing some P4 billion to the Philippines for road projects aimed at decongesting monstrous jams in Metro Manila.Noriaki Niwa, chief representative of the Japan International Cooperation Agency (JICA), said the loan will cover major interchanges to address traffic congestion in Metro Manila, including flyovers, and road links.Among them are the interchanges on EDSA-Roosevelt/Congressional, EDSA-West/North, and C-5-Green Meadows and North/Mindanao Avenue. ... …

  • US won’t provide flexibility for countries interested in TPP

    Washington D.C.—The US government will not provide any flexibility for potential member countries, like the Philippines, in their bid to become part of the Trans-Pacific Partnership (TPP), a senior official said. Economic and Business Affairs Deputy Assistant Secretary William E. Craft, Jr., said all restrictions stated under the TPP trade deal will be maintained and have to be met by the current and future member countries. Earlier, the Department of Trade and Industry (DTI) said that the …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options