COSCO Capital, Inc. has completed its divestment from Liquigaz Philippines Corp., after the Philippine Competition Commission (PCC) approved its sale to Fernwood Holdings, Inc last week.
In a decision posted on its website last week, the PCC said it “has resolved to take no further action with respect to the proposed transaction.”
“(T)he proposed acquisition by Fernwood Holdings, Inc. of shares in Liquigaz Philippines Corp will not likely result in substantial lessening of competition within the market for bulk and cylinder supply of liquefied petroleum gas in the Luzon geographic market…,” the PCC said.
Cosco disclosed its decision to sell its entire stake in Liquigaz to Fernwood Holdings in October 2018, saying this will allow the firm to maximize shareholders’ value and achieve financial flexibility moving forward.
While the listed firm did not disclose the deal’s value, it noted that it is less than 12% of the company’s total assets as of December 2017 or P111.61 billion.
Cosco acquired Liquigaz from SHV Energy of the Netherlands in 2014.
Incorporated in 1988, Cosco’s interest spans to grocery retail, real estate and property leasing, liquor distribution, oil and mining, and specialty retail. Its subsidiaries include Puregold Price Club, Inc. and S&R Membership Shopping, Ellimac Prime Holdings, Inc., and Office Warehouse, Inc.
The company realized a 16% increase in net income attributable to the parent to P3.97 billion during the first nine months of 2018, following a 17% increase in gross revenues to P122.18 billion.
It attributed the positive performance to Puregold and S&R, which contributed 59% of total profits. Cosco’s businesses were boosted by the continued economic growth, as well as higher consumer spending due to the implementation of the tax reform law.
The commercial real estate segment accounted for 22%, while liquor distribution provided 13%. At the time, the combined earnings of Liquigaz and Office Warehouse contributed a total of 10% to net profit.
Shares in Cosco gained 0.56% or four centavos to close at P7.24 each at the stock exchange on Monday. — Arra B. Francia
