Cosco terminates P500 million jv with Thai firm

MANILA, Philippines —  Cosco Capital Inc. of tycoon Lucio Co is no longer pursuing its planned P500-million retail joint venture with a Thai company.

The listed retail holding firm said that its management and Siam Global House Public Co. Ltd. have decided to terminate the joint venture agreement, which they entered into in 2022.

The agreement aimed to establish and operate a retail shop or warehouse specific for building and construction-related materials, home and garden decorative goods, home improvement goods, construction equipment and tools in the Philippines.

A new joint venture company, which was 45 percent owned by Cosco Capital and 55 percent owned by Siam Global, was supposed to be incorporated with the Securities and Exchange Commission as part of the transaction.

Cosco Capital, however, said the management of both parties mutually decided to no longer proceed and finally terminate the agreement.

“This decision was mutually arrived at after strategically reviewing the current market conditions,” the company said.

Siam Global is a public limited company registered under the laws of Thailand.

It operates 76 stores in Thailand selling building and construction-related materials, home and garden decorative goods, home improvement goods, construction equipment and tools.

The joint venture was supposed to be part of Cosco Capital’s expansion program, which will enable it to invest with a foreign group into a new line of business that will be accretive in terms of investment income for the company.

Cosco Capital is into the grocery retailing business through Puregold Price Club Inc. and S&R Membership Shopping Club, liquor segment through The Keepers Holdings Inc. and specialty retailing business through Office Warehouse Inc.

The company is also into the commercial real estate as well as energy and mineral segment.

Cosco Capital’s board also recently approved an additional budget of P2 billion for its share buy-back program, making the total amount allotted for the program to P4 billion.

The company last Monday bought back a total of 300,000 shares at prices ranging from P5.26 to P5.30 per share for a total of P1.59 million.