Lucio Co's Cosco Capital forays into LPG business, buys Liquigaz 

(Updated 10:44 a.m., July 16, 2014) Lucio Co's listed retail conglomerate Cosco Capital Inc. is acquiring 90 percent of liquid petroleum gas (LPG) supplier Liquigaz Philippines Inc. which marks the company's foray into the LPG business.

 

In a disclosure to the Philippine Stock Exchange, Cosco Capital said the deal is expected to be completed in the next few days.

 

Cosco Capital president Leonardo Dayao said the acquisition marks its entry into the LPG business "with a strong initial presence in the upstream business."

 

"Cosco will assume control of the LPG provider while minority partner PR Gaz Inc. will retain a 10 percent stake," Dayao said in the disclosure.

 

No other details on the transaction were disclosed.

 

Liquigaz used to be wholly-owned by the Netherlands-based SHV Energy until a small local player PR Gaz bought the supplier of cooking gas last month.

 

"Cosco envisions a move towards the downstream retail business in the near future via either mergers and acquisitions of existing re-fillers or establishing its own re-filling network and eventually retailing LPG directly to the wider household end-user market," the company said.

 

Liquigaz is the second largest LPG supplier, with a 30 percent share of the Philippine market. 

 

It said it is the biggest seller of LPG in Luzon with over 60 percent of the total Philippine imports unloaded, stored, and sold from its 12,500 metric ton capacity storage tanks in Mariveles, Bataan. 

 

Liquigaz is engaged in wholesale trade, with 85 percent of its volume going to refillers and distributors and 15 percent to commercial end-users.

 

As the listed holding firm of businessman Co, Cosco Capital includes his 51 percent stake in Puregold Price Club Inc., portfolios of liquor distribution companies, commercial real estate companies and oil storage business. – Danessa O. Rivera/VS, GMA News