Lucio Co-led Cosco looking to raise P12-B for expansion

MANILA, Philippines – Cosco Capital Corp., the holding firm for businessman Lucio Co’s assets, announced that it requires P12 billion to fund the expansion of its liquor, property, and oil storage businesses, as well as its diversification into non-food ventures.

Cosco said that it plans on spending P6 billion to expand its real estate business. The company also earmarked P3 billion for debt financing, P1 billion for liquor distribution and P2 billion for its diversification into noon-food specialty retail.

Cosco earlier announced it would conduct a share sale to increase its public float to the level required Philippine Stock Exchange. The announcement also came after it got regulatory approvals to reorganize its business interests.

The Securities and Exchange Commission (SEC) approved an increase in the company’s authorized capital stock to P10 billion and infusion of over P70 billion worth of Co’s assets in the company, including supermarket chain Puregold Price Club Inc.

The infusion gave Co a 93.4% stake in Cosco.

Puregold is set to open 26 new branches in 2013. Along with its store expansion, Puregold also plans to acquire pharmacy stores and venture into construction and hardware retailing.  

Cosco announced that it is expanding the distribution network for its liquor business in Visayas and Mindanao. The company said that it is looking to develop commercial retail establishments in the provinces. It has identified 8 sites for retail malls, each with a P450 million budget for construction and land acquisition.  

Cosco registered an 85% hike in its net income in 2012 to P2.85 billion from P1.5 billion in 2011. – Rappler.com