Lucio Co's Cosco Capital to spend P12B on expansion

Cosco Capital Corp. needs P12 billion to finance the expansion of its property and liquor retail concerns, oil storage businesses and diversification into non-food sector. The listed holding firm of businessman Lucio Co noted in a statement to the Philippine Stock Exchange it is spending P6 billion to expand its retail portfolio, P3 billion on debt refinancing, P2 billion for non-food specialty retail, and P1 billion for its liquor distribution business. Cosco earlier said it intends to sell shares this year to reorganize the company and is securing regulatory approvals. Last week, the Securities and Exchange Commission approve an increase in Cosco's authorized capital stock to P10 billion and a capital infusion worth P70 billion in assets under the name of Co and his group. The assets include Co’s 51 percent interest in supermarket chain Puregold Price Club Inc., plus portfolios of liquor distribution companies, commercial real estate companies and an oil storage business. In exchange, Co will have 93.4 percent interest in Cosco. Last year, Cosco recorded a net income of P 2.85 billion, up 85 percent from P1.5 billion a year earlier. Revenues amounted to P60.6 billion from P41.4 billion in the same comparable period. — VS, GMA News