Cosco partners with Thai firm for one-stop building, construction warehouse

Cosco Capital Inc. — the operator of retail businesses Puregold and S&R — has partnered with Thailand-based Siam Global House Public Company Limited to put up a retail shop in the country for construction materials and home goods.

In a regulatory filing, Cosco said the joint venture will have an initial investment of P500 million for a retail shop or warehouse which will house building and construction-related materials and equipment.

It will also be specific for home and garden decorative goods, home improvement goods, and tools, among others.

“The transaction is in line with the expansion program of Cosco Capital which would enable it to invest thru a joint venture with a foreign group into a new line of business that will be accretive in terms of investment income for the company,” the filing read.

The joint venture company is expected to be incorporated with the Securities and Exchange Commission (SEC) and start to operate “in the next three to four months.”

The agreement was signed by the two parties in Roi Et, Thailand last Friday, June 17.

The new venture is expected to finalize, construct, and open three to five stores in the next 12 to 18 months located in the National Capital Region, Calabarzon, and in Central Luzon.

Profits will be shared by the two parties based on equity interest participation in the venture, with Cosco accounting for 45% and Siam Global with 55%.

The management and operations for the company will be jointly decided by the parties based on the agreement, but no further details have been given.

Cosco Capital is the holding firm for the businesses of Lucio Co, which cover interests in retail, real estate, wine and liquor, and mining and minerals.

Its businesses include Puregold Price Club Inc., Ellimac Prime Holdings Inc., Premier Wine and Spirits Inc., and Office Warehouse Inc.

Shares in Cosco were trading flat at P4.34 apiece as of 11:21 a.m. on Tuesday, June 21. —Jon Viktor Cabuenas/KG, GMA News