THE Securities and Exchange Commission (SEC) has approved the merger of three provincial retail companies with Puregold Price Club, Inc., tycoon Lucio L. Co’s company told the stock exchange on Monday.
Puregold said its merger with Daily Commodities, Inc., First Lane Super Traders Co., Inc. and Goldtempo Co., Inc. was approved on Nov. 24.
“The Company intends to consolidate all stores catering to the same market group into one Company. The Company expects better inventory management, efficient cash management and simplified reporting to government agencies as a result of this merger,” Puregold said.
The three grocery retailers have a combined 17 stores, mostly in Cabanatuan City and the provinces of Rizal, Bulacan and Aurora.
Puregold said the stores “will soon carry the brand name and be converted to Puregold stores.”
The merger plan was filed with the SEC on May 4, and subsequently submitted for the approval of stockholders during the company’s annual meeting on May 30.
Puregold saw a 7% increase in net income to P3.89 billion for the first nine months of 2017, driven by an 11% rise in net sales to P87.56 billion. However, cost of sales also went up by 11% to P73.11 billion during the same period.
Incorporated in September 1998, Puregold is involved in trading goods such as consumer products — canned goods, housewares, toiletries, dry goods, food products, pharmaceutical and medical goods — on a wholesale and retail basis.
On Monday, shares in Puregold rose 2.39% to close at P49.20 each. — Victor V. Saulon
