COSCO Capital, Inc. told the stock exchange on Monday that it has divested its entire stake in Liquigaz Philippines Corp., a distributor of liquefied petroleum gas (LPG) in the country.
The listed holding firm of tycoon Lucio L. Co said its unit Canaria Holdings Corp. sold all of its shares in Liquigaz and Calor Phils. Holdings, Inc. to Fernwood Holdings, Inc. The share purchase agreement was signed on Oct. 19.
“The transaction is expected to maximize shareholders’ value and for the company to achieve financial flexibility moving forward,” Cosco said.
The company did not disclose the deal’s value, saying it is “less than 12% of the total asset of Cosco Capital, Inc. as of December 2017” which stood at P111.61 billion.
However, Cosco said the sale is subject to the approval of the Philippine Competition Commission, which requires mandatory notification of mergers and acquisitions with the threshold for the size of person at P5 billion and the size of transaction at P2 billion.
In 2014, Cosco acquired Liquigaz from SHV Energy of the Netherlands.
Cosco’s portfolio includes interests in grocery retail, real estate and property leasing, liquor distribution, oil and mining, and specialty retail.
On Monday, shares in Cosco rose 4.18% or 28 centavos to close at P6.98 each. — Victor V. Saulon
