The Keepers Holdings Inc., the newly formed liquor distribution company of businessman Lucio Co, plans to spend P4 billion within the next two years to fund potential acquisition opportunities.
Keepers Holdings, based on the registration statement for its planned share sale filed with the Securities and Exchange Commission, said it plans to acquire other liquor businesses that have a strategic fit to the current operations.
“The group believes that the Philippines offers attractive mergers and acquisitions opportunities fit for the group’s horizontal and vertical integration to capture more value along the alcoholic beverage industry’s value chain,” Keepers Holdings said.
Keepers Holdings, formerly known as Da Vinci Capital Holdings, Inc., was a shell company also owned by Co. It earlier bought Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc. through a share-swap transaction with Cosco Capital Inc., Co’s retail holding company.
Keepers Holdings’ planned acquisitions will further spur growth in the domestic spirits market and expand its portfolio across the alcoholic beverage industry.
Co’s group collectively is the largest distributor of imported spirits in the Philippines with a market share of 74 percent based on volume and 66.9 percent based in retail sales value in 2020, according to IWSR, a global provider of data and market intelligence on beverage alcohol.
Aside from acquisitions, Keepers Holdings plans to spend P1.5 billion to further develop product portfolio and distribution channels.
“As part of the group’s initiative to maintain its leadership position in the imported spirits, wines and specialty beverages segment, the group intends to fill in the gaps in its existing product portfolio by developing, incubating and launching new products,” the company said.
Funding for these projects will come from the proceeds of the planned P7.5-billion share sale. The company seeks to sell up to three billion in common shares to be sold at a price of between P2 and P2.50 apiece.
The fund raising activity is expected to widen the company’s public float to 20.94 percent.
Keeper Holdings’ public float is currently at 0.34 percent following the completion of the share swap transaction. Thus, trading of the company’s has been suspended by the Philippine Stock Exchange due to non-compliance with the 10-percent minimum public ownership.