LUCIO Co-led retailer Puregold Price Club Inc. said Thursday that it had acquired a total of 153 Puremart stores from affiliate Tower 6789 Corp. at a book value of up to P567.5 million.
In a disclosure, Puregold said that it was revising its Nov. 7 announcement that “at least 120 to 130 stores” would be purchased.
“Despite the increase in the number of stores acquired, the consideration for this acquisition remains the same,” it also said in a report to the Securities and Exchange Commission.
Puregold’s board in November approved the purchase of Puremart stores, including “leasehold improvements, furniture and fixtures, equipment and merchandise inventory” from Tower 6789.
The stores are located across Metro Manila, Camanava (Caloocan, Malabon, Navotas and Valenzuela), Rizal, Bulacan and South Luzon.
Puregold said that Tower 6789 was a domestic firm wholly owned by League One Inc., a company that is fully owned by the Co family, “making this a related-party transaction.”
“As such, this matter was initially endorsed for the approval of Puregold Price Club Inc.’s audit committee, pursuant to its policy on related party transactions,” it also said.
The acquisition cost, it noted, was “substantially below” 10 percent of the company’s book value.
Puregold recorded a net income of P6.9 billion for the first nine months of 2024, up 4.5 percent from P6.6 billion in the same period in 2023, while consolidated revenues in the period rose 9.1 percent to some P152 billion from P139.3 billion.
As of end-September 2024, the retailer had opened 19 new Puregold stores, three S&R membership shopping warehouse outlets and three S&R New York Style QSRs (quick service restaurants), bringing its total number of stores to 591 nationwide.
Puregold shares on Thursday fell 0.65 percent to P30.65 each.
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