Vulcan reorganization seen early next year

MANILA, Philippines - Vulcan Industrial & Mining Corp., controlled by the Ramos family of National Book Store, is expected to complete its corporate reorganization in the first quarter next year.

From this series of corporate transactions, Vulcan will become the vehicle for the backdoor listing of National Book Store Inc., which is poised for a double-digit growth this year, a company official said.

“I think it’s more reasonable to complete it in the first quarter of 2014,” Vulcan treasurer Adrian Ramos told reporters after the company’s annual stockholders meeting.

Shareholders approved yesterday the transfer of Vulcan’s mining and oil-related assets to another firm.

The firm will also change its primary purpose from mining to retail, with its secondary purposes to include wholesaling, publishing, printing, manufacturing, distribution and contracting.

In terms of capitalization, the country’s top bookstore chain will convert advances amounting to P363.94 million into shares in Vulcan while infusing P3.03 billion through a share purchase. Vulcan will also change its name to National Book Store Retail Corp.

A backdoor listing, which offers a cheaper and faster way to list on the bourse, occurs when a listed firm is acquired by an unlisted firm and the merger will result in a change in business.

Moving forward, Ramos said National Book Store targets a 10-percent growth in revenues this year.

“I think if the economy keeps on growing the way it has been growing, [the 10-percent growth] will be sustainable,” he said.

Ramos said the company is preparing for the digital shift in its books business. Around 60 percent of National Book Store’s business volume is made up of stationery and office supplies.

Last year, revenues of National Book Store reached P10 billion, from P9.5 billion in 2011.

The Ramos family is adding 10 to 15 new stores this year to expand its 165-branch network.

The new stores would be scattered nationwide, with some to be installed in SM Malls. National Book Store currently has a branch in Hong Kong which opened five years ago.

National Book Store was built by Socorro Cancio-Ramos as a stall in Escolta that sells supplies, novels and textbooks before the Japanese occupation.

Vulcan, for its part, has been participating in oil exploration projects since 1976 and is part of two consortiums that have petroleum contracts. Its wholly-owned subsidiary Vulcan Materials Corp. is primarily engaged in the quarrying, crushing and marketing of rock aggregates.