MANILA, Philippines - Chinese-Filipino businessman Lucio Co will fold up to P60 billion worth of assets into Alcorn Gold Petroleum Corp. as part of its transformation from an oil exploration firm to the supermarket tycoon’s investment holding firm.
In a disclosure to the Philippine Stock Exchange, Alcorn said it would own and hold shares in Co’s various businesses which include supermarkets, wine distribution, real estate and oil storage tanks valued at between P40 billion and P60 billion.
Among the businesses to be folded in include Puregold Price Club Inc. (67.29 percent), Puregold Properties (100 percent), Premier Wine and Spirits (80 percent), Elllimac Prime Holdings (100 percent), Cosco Prime Holdings (100 percent), Meritus Prime Distributions (100 percent), Pure Petroleum (100 percent) and Premier Wine and Spirits (80 percent).
The acquisition will be made through a share swap or subscription to the increase in the firm’s capitalization from P3 billion to P10 billion.
Alcorn is seeking shareholders’ approval for the change in the par value of its shares from P0.01 to P1 per share as well as change in corporate name to Cosco Capital Inc.
The company is also spinning off its oil and mineral assets to a wholly-owned subsidiary.
As of end-September this year, Co held a majority 59.77-percent interest in Alcorn Gold.
Montosco, Meritus, Premier Wine and Spirits are exclusive distributors in the Philippines of well-known imported brands of wine, spirits, beer and other beverages from Europe, US and other countries.
Ellimac Prime, Pajusco Realty, Cosco Prime, Pilgor Development Services and 514 Shaw Property Holdings Inc. are all lessors and developers of commercial properties. These companies are currently undergoing a merger with Ellimac Prime as the surviving company.
Puregold Properties is a developer of residential and vacation houses. Its primary project is located in Tagaytay City.
Pure Petroleum, on the other hand, is a lessor to a number of petroleum companies of oil storage tanks and facilities inside the Subic Bay Freeport Zone, Olongapo City. In the same freeport zone, Fertuna Holdings Corp. owns a commercial building that it leases to Puregold Supermarket.
“Such transactions are being entered into to incorporate the shareholdings of the Co family and improve the value of Alcorn. As all of the investments in shares of stocks from other companies will be more than 50 percent owned by Alcorn, the financial position and income of the corporations shall then be consolidated to the company’s financial statements,” Alcorn said.
Alcorn said the reorganization or spin-off of Alcorn’s oil and mineral assets is intended to achieve a more focused and efficient management of the company’s business as a holding company.
Incorporated in 1987, Alcorn explores and produces oil, gas, and metallic and non-metallic reserves.
Alcorn last month tapped boutique investment banking firm Evercore Partners as financial adviser to “study and explore capital market and corporate structure options” for the company.
Evercore Partners is also the financial adviser for the initial public offering of Co’s grocery chain Puregold in September last year.