Puregold scoops up Divimart

MANILA, Philippines — Puregold Price Club Inc. acquired a number of DiviMart supermarkets, with plans to convert more into the namesake grocery chain. 

The plan was announced in a disclosure sent to the Philippine Stock Exchange on Wednesday. 

Puregold explained that the deal covered 14 DiviMart supermarkets, including leasehold improvements, furniture, fixtures, equipment, and merchandise inventory.

DiviMart is a Filipino supermarket chain founded in 1989 by Harry Uy and Vivian Ong Juanitas. It has 30 branches all over the country, making its name as a low-cost supermarket. 

The disclosure indicated the acquisition gave the listed company access to all DiviMart supermarket locations, which can be converted to Puregold stores under a sublease transaction.

Likewise, Puregold disclosed that an additional 18 DiviMart locations are under evaluation for a “possible conversion” into Puregold stores.

Disclosure broken down showed that the stores are located in parts of Bulacan, Bataan, Nueva Ecija, Olongapo City, Rizal, Laguna, Manila, and Cavite.

“The parties are still finalizing the definite consideration for the contemplated transaction because the evaluation of store locations, improvement, furniture, fixtures, equipment, and merchandise inventory is still ongoing,” the statement read. 

That said, the company noted that the deal was below 10% of Puregold’s book value. 

Shares in Puregold currently trade 2.13% up at P28.8 apiece as of 11:33 am on Wednesday. — Ramon Royandoyan