Lucio Co's Cosco Capital makes P16.8B from share sale

Retail conglomerate Cosco Capital Inc. on Friday said it successfully raised P16.8 billion ($400 million) in a 1.6-billion international share sale at P10.50 apiece.

 

In a briefing, Cosco Capital president Leonardo Dayao told reporters proceeds from the transaction, which included new and secondary shares owned by the group of businessman Lucio Co, will be used to expand core businesses—retail, real estate development, oil storage and liquor distribution

 

JP Morgan, Deutsche Bank, First Metro Investments Corp. and BDO Capital and Investments handled the offering, while Evercore Partners served as the financial adviser.

 

Stephen Cu Unjieng, Evercore Partners chairman, said under $300 million worth of primary shares and over $100 million worth of secondary shares were involved in the transaction.

 

After the share sale, Cosco Capital's public float was raised to 30 percent from less than 10 percent.

 

The offering was priced at a steep discount, said Cu Unjieng, noting Cosco Capital was relatively illiquid and has not done any international placement of shares.

 

Before the share sale, Co infused $1.8 billion worth of assets into Cosco Capital including his 51 percent stake in Puregold Price Club Inc., ownership in Ellimac Prime Holdings Inc., Go Fay & Co. Incorporada, SVF Corporation, Nation Realty Inc., 118 Holdings Inc., Patagonia Holdings Corp., Fertuna Holdings Corp., Premier Wines and Spirits Inc., Montosco Inc., Meritus Prime Distributions, Inc., and Pure Petroleum Corp.

 

Fifty percent of the share sale proceeds will be used to expand Cosco Capital's retail and real estate businesses and double of the oil and petroleum storage space, Dayao noted.

 

Money, equivalent to 20 percent of the proceeds, will also used to acquire non-food businesses like home improvement, pharmacy and hardware stores.

 

At least 10 percent of the money will also be used to expand the company's liquor production and distribution while another 2 percent will be used to pay off existing debt. — VS, GMA News