PSE okays share sale of Lucio Co’s The Keepers

The Philippine Stock Exchange approved the P7.5-billion share sale of The Keepers Holdings Inc., a leading distributor of imported spirits owned by retailer Lucio Co.

The Keepers plans to sell up to three billion in primary shares at a price ranging from P2 to P2.50 each.

The Keepers plans to use the net proceeds from the share sale for strategic acquisition opportunities, expansion of product portfolio and distribution channels, investments in distribution and logistics network, working capital and for general corporate purposes.

The offering period will run from November 4 to 10, 2021, with the shares to be listed on the main board of the PSE on November 19, 2021.

The company hired China Bank Capital Corp., PNB Capital Investment Corp. and SB Capital Corp. as joint issue managers, lead underwriters and book runners of the offering.

The follow-on offering aims to increase the company’s public float to 20.94 percent, allowing it to comply with the 10-percent minimum public ownership requirement for listed companies.

The public float of The Keepers fell below the required 10 percent in July after it completed a share swap deal that enabled it to acquire three liquor retailing firms under affiliate Cosco Capital Inc.

The deal is part of Co’s move to consolidate his liquor, wine and specialty beverage distribution businesses, namely Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc. under The Keepers.

With the transaction, The Keepers is now the largest distributor of imported spirits in the Philippines holding a 74-percent market share by volume.

The company is the distributor of leading brands, such as Alfonso, Johnnie Walker, Jose Cuervo, Jim Beam and Jinro.

The company reported a 56.8 -percent increase in net income in the first half of the year to P650.7 million from P415 million year-on-year.

First half net sales reached P4.30 billion, up 34.8 percent as total sales volume increased 40.9 percent to over 1.7 million cases sold in the first six months of 2021.

The company expects the wine and spirits sector to sustain its growth as it undergoes shifts in consumer preferences in favor of higher-quality and premium offerings.

Topics: Philippine Stock Exchange , PSE , Lucio Co , The Keepers Holdings Inc.
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