Robinsons Retail Holdings, Inc., through its wholly-owned subsidiary, Robinson’s Incorporated, entered into a share purchase agreement with Mitsubishi Corporation for the sale of the latter’s shares in Robinsons Convenience Stores, Inc. (RCSI).
The transaction involves Robinson’s Incorporated’s purchase of shares from Mitsubishi Corporation which is equivalent to approximately 8 per cent stake in RCSI.
Robinsons Retail’s effective ownership in RCSI increased from 51.0 per cent to 59.1 per cent. Furthermore, Mitsubishi Corporation sold its remaining 4 per cent stake to Japan-based partner, Ministop Co., Ltd., also increasing the latter’s stake to 40.9 per cent.
“We remain fully committed in keeping and growing our convenience store business. The CVS format is the fastest growing retail channel in the region and we intend to take advantage of this trend,” said Robina Y. Gokongwei-Pe, President and CEO of Robinsons Retail.
RCSI is the exclusive master franchisee of Ministop in the Philippines.
For the six-month period ended June 2018, Ministop generated total system-wide sales amounting to Php4.5 billion with merchandise sales of Php3.0 billion. To date, there are 492 Ministop branches in key areas of Metro Manila, Luzon, and Visayas.
In August, the Philippine Competition Commission (PCC) approved the acquisition by Robinsons Retail Holdings, Inc of a 100-per cent stake in Rustan Supercenters, Inc. (RSCI) from Mulgrave Corporation B.V (MCBV).
MCBV is a wholly-owned member of the Dairy Farm International Holdings, Ltd. Group of companies.
In a letter dated August 16, 2018, PCC has adopted the decision that the acquisition by RRHI of shares in RSCI does not result in a substantial lessening of competition in the relevant market, for the following reasons: a) there is no ability and incentive for the parties to engage in foreclosure post-acquisition; and b) there are sufficient competitive constraints remaining from others participants, post-transaction.
On March 23, 2018, RRHI announced that it has agreed to partner with Dairy Farm to build a leading food retail business. The transaction involves a share for share swap involving shares of RSCI in exchange for primary common shares of RRHI.
Completion of the transaction is expected within the next few months, at which time a further announcement will be made. – BusinessNews.ph