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Dairy Farm to hold 18.25% stake in Robinsons Retail Holdings
DAIRY Farm International Holdings will be partnering Philippine-listed Robinsons Retail Holdings (RRHI), with the retail group holding an 18.25 per cent stake in RRHI.
In a Singapore Exchange filing on Friday, the member of the Jardine Matheson Group said that it will combine its interest in wholly-owned Rustan Supercenters (RSCI) with RRHI to "leverage the combined strengths of both groups" and create a new platform for growth.
Dairy Farm will exchange its interest in RSCI for new shares in RRHI that represents about 12.15 per cent of its enlarged share capital at PHP94 per share valued at some US$346 million.
The group will also acquire a further 6.1 per cent interest of the enlarged share capital from the existing controlling shareholders, the Gokongwei family, at US$174 million.
The Gokongweis, one of Philippine's wealthiest families, will continue to hold a 51 per cent interest in RRHI after completion of the transactions.
Upon completion of the transaction, Dairy Farm will have the right to nominate two directors to the board of RRHI.
It is funding this investment through a combination of existing cash and borrowings.
Dairy Farm said that the move is intended to build a "leading" food retail business in the Philippines.
"By joining forces with RRHI, Dairy Farm will maintain its strong presence in the Philippines and contribute to the growth of the consumer market with better products, services and experiences."
The transaction is subject to certain conditions and completion is expected to take place within six months.
Dairy Farm closed 10 Singapore cents lower to S$7.77 on Friday.