Corporate News

Puregold consolidates supermarket businesses

Posted on November 23, 2012

SHAREHOLDERS of retail chain Puregold Price Club, Inc. have approved the merger of two operating units into the parent company, consolidating Puregold’s supermarket businesses under the publicly listed supermarket operator.

Puregold shareholders, voting at the firm’s special stockholders’ meeting at Acacia Hotel in Alabang, Muntinlupa City, approved the merger of Puregold, Puregold Junior Supermarket, Inc., and Gant Group of Companies, the operator of Parco Supermarket.

The merger of Puregold, Puregold Junior, and Gant Group had been previously approved by Puregold’s board last Aug. 14.

Under the merger’s terms, Puregold shall be the surviving entity and absorb the operations, liabilities, and obligations of the two smaller firms.

Puregold Junior Supermarket, which operates the Puregold Junior brand, was incorporated in 2008, and acquired by Puregold in 2010, while Gant Group was incorporated in 2010 and acquired by Puregold in May 2012, Puregold’s end-September financial report showed.

Gant Group owns and operates 19 Parco Supermarket branches in Metro Manila, Rizal, and Bulacan, according to Parco Supermarket’s Web site.

Puregold acquired S&R Membership Shopping in March after the purchase of Parco Supermarket last May, broadening its current retail portfolio and market reach.

Puregold last March allotted an estimated budget of P3 billion for store development this year, to be partially financed from the balance of its initial public offering proceeds, as well as internally generated cash.

The firm expects sales to grow by 50% this year. Shares in Puregold gained 20 centavos or 0.69% to close at P29.00 apiece yesterday. -- Franz Jonathan G. de la Fuente