Vulcan reorg may include Crossings

MANILA, Philippines - The corporate restructuring of Vulcan Industrial and Mining Corp. is expected to be completed within the next six to 12 months and may also involve the infusion of the department store business of the family of Alfredo Ramos aside from the chain of National Bookstore and Powerbooks outlets.

Adrian Ramos, treasurer of Vulcan, said the company is undergoing cleanup and is exploring strategic options as it exits the mining business.

“We’re evaluating all sorts of things. We’re studying how to restructure it like what kind of assets to be infused. We hope to complete everything in the next six to 12 months,” Ramos said.

Ramos said that while the country’s largest book and office supplies chain is considering a backdoor listing on the exchange via Vulcan, nothing has been finalized yet and that other assets may still be injected into the company.

Among the other assets that may be infused into Vulcan include publishing companies, music stores (Tower Records Music One), Gift Gate, and department stores (Crossings).

Analysts said converting Vulcan into a holding company of the Ramos family is also not far-fetched as more tycoons or businessmen have been moving into that direction. The latest of which is Tanduay Holdings Inc., which has become taipan Lucio Tan’s umbrella holding firm for various businesses.

Chinese-Filipino businessman Lucio Co is also reportedly looking to convert Alcorn Gold Petroleum Corp. as his flagship company with the addition of additional businesses.

Ramos said Vulcan’s reorganization comes at a most opportune time as the country’s economic growth remains dependent on consumer spending.

“There’s a clamor for consumer-driven companies. Listing National Bookstore via backdoor would be the fastest and easier way to ride on the local economy’s growth,” Ramos said.

National Bookstore has acquired P12.86 billion worth of shares in Vulcan, equivalent to 12.86 million shares.

The shares came from an increase in Vulcan’s capitalization to P4 billion from only P500 million.