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Gokongwei-led RRHI acquiring Rustan’s supermarket chain

Chris Schnabel

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Gokongwei-led RRHI acquiring Rustan’s supermarket chain
Robinsons Retail Holdings announces a P18-billion share swap deal to purchase the grocery chain operator from the Dairy Farm Group

MANILA, Philippines – Robinsons Retail Holdings Incorporated (RRHI), the retail holding firm of the Gokongwei family, is acquiring control of supermarket operator Rustan’s Supercenters, Incorporated (RCSI) from the Dairy Farm Group.

RCSI operates the supermarket brands Rustan’s Supermarket, Marketplace by Rustan’s, Shopwise Hypermarket, Shopwise Express and Wellcome.

In a disclosure late on March 23, RRHI said that the “Boards of Directors of RRHI and Mulgrave Corporation B.V (MCBV) approved the acquisition by RRHI of MCBV’s 100% stake in RCSI through a share for share swap involving shares of RSCI in exchange for primary common shares of RRHI”.

MCBV is wholly-owned member of London stock exchange listed Dairy Farm International Holdings, Ltd. Group of companies.

RRHI noted that value of Dairy Farm Group’s 100% ownership of RSCI is approximately P18 billion.

The share swap means RRHI will pay for the acquisition through its shares and effectively partner with the Dairy Farm Group.

RRHI said that “certain members of the Gokongwei family intend to sell some of their shares which will result in the Gokongwei family effectively owning 51% of the expanded capital of RRHI. After the completion of the secondary sale tranche, Dairy Farm, through MCBV, will own 18.25% of RRHI”.

“Leveraging the combined strengths of RRHI and RSCI will lead to benefits to customers in terms of even better service, quality and value,” it added.

RRHI noted however that the deal is still subject to necessary approvals are the shareholders of RRHI, the Philippine Competition Commission and the Securities and Exchange Commission. –

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