Cosco Capital Inc. of retail tycoon Lucio Co teamed up with Siam Global House Public Company Limited of Thailand to operate one-stop home improvement stores in the Philippines.
Cosco said in a disclosure to the stock exchange it signed a joint venture agreement with Siam Global to manage modern trade retail stores that will sell building and construction-related materials, home and garden decorative goods, home improvement goods, construction equipment and tools.
The new joint venture company will be 55-percent owned by Siam Global House, with Cosco holding 45 percent. The new company will have an initial capital of P500 million.
The joint venture partners are looking to finalize, construct and open three to five stores in the next 12 to 18 months. These stores will open in Metro Manila, Calabarzon and Central Luzon.
Siam Global House is a distributor of home construction materials and decorative products and has 76 stores.
The signing of joint venture agreement took place at the head office of Siam Global House in Roi Et, Thailand.
Cosco is an investment holding company of Co. It is engaged in various businesses including retail, wine and alcohol distribution, real estate and mining.
Cosco saw its net income rise 10.9 percent in the first quarter to P2.7 billion from P2.44 billion in the same period in 2021.
Consolidated revenues amounted to P40.68 billion in the first quarter, up 2.8 percent from P39.57 billion a year ago.
Share price of Cosco climbed 2.4 percent Monday to P4.34.