Philippines’ Cosco Capital Shares Slump After $400 Million OfferCecilia Yap
Philippine holding company Cosco Capital Inc. raised about $400 million by selling shares at a 30 percent discount. Stocks slumped.
Cosco Capital and majority shareholder Lucio Co sold 1.6 billion shares at 10.50 pesos each in a transaction that widened the company’s public ownership to 30 percent, Stephen CuUnjieng, chairman at the Asia unit of Evercore Partners Inc., which helped arranged the sale, said in a briefing in Manila.
Shares of the company previously known as Alcorn Gold Resources Corp. dropped 32 percent to 10.20 pesos at the end of trading in Manila, its biggest decline since Jan. 21, 2003. The stock, which suspended trading yesterday, closed at 15 pesos on May 29. The benchmark stock index rose 1 percent today.
Three-fourths of the share sale proceeds will go directly to Cosco to expand its retail and liquor businesses, acquire non-food retail ventures and pay debt, Cosco President Leonardo Dayao said in today’s briefing. Cosco controls retailer Puregold Price Club Inc. Cosco owners will get the remaining $100 million.
Businessman Lucio Co infused 51 percent of Puregold, his liquor distribution, property and oil storage businesses in Cosco in exchange for 4.99 billion Cosco shares worth 74.8 billion pesos or 15 pesos a share in December. Co’s interest in Cosco before today’s share sale was 93 percent.
Cosco plans to acquire a pharmacy chain and a network of home-improvement stores in the next six to nine months, Dayao said, declining to elaborate.
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