Vol. XXI, No. 170 [ Business World Online ]
Tuesday, April 01, 2008 | MANILA, PHILIPPINES
HYPERMARKET CHAIN Puregold Price Club, Inc. has absorbed Puregold stores in Parañaque, Valenzuela, Tayuman in Manila and Dau in Pampanga, which had been separate corporations, in a bid to unify operations.
The merger plan, which saw Puregold Price Club absorbing the assets and liabilities of the four outlets, was approved by the Securities and Exchange Commission last February.
JONATHAN L. CELLONA
As the surviving entity, Puregold Price Club also sought approval to increase its authorized capital stock to P3 billion from only P50 million.
Out of the P2.95-billion increase, stockholders have subscribed to P761.72 million worth of shares, with P500 million already paid in cash.
All five corporations are owned by businessman Lucio Co, and run by one person, Leonardo B. Dayao, as president.
In a telephone interview, Mr. Dayao said the merger made sense as the companies have a common owner. "We deemed it important to consolidate and unify the operations," he told BusinessWorld.
"We are increasing our capital to pursue our business program to reach more customers and bring Puregold Price Club closer to the market. It is a continuing program on our part," he added.
Mr. Dayao also said opening new Puregold Price Club branches this year is "no exception."
"However, we don’t have a firm number yet," he said.
Asked whether the company has plans to go public, Mr. Dayao said an initial public offering is a "long-term objective" but the company has no immediate plans to list on the stock exchange.
The Puregold Price Club has 22 retail stores across Metro Manila and nearby provinces. The first Puregold store at Shaw Boulevard in Mandaluyong was established in 1998.
Mr. Co’s Puregold Price Club opened its doors to consumers without membership require-ments even with the emergence of exclusive supermarket chains such as S&R Price and Makro.
Stockholders of the absorbed corporations who were also stockholders of Puregold Price Club will be allowed to use the net assets of the absorbed corpo-rations as partial payment for their unpaid subscriptions in the planned increase in authorized capital stock, the company said.
Stockholders of the absorbed corporations who are not Puregold Price Club stockholders will receive "fully paid and non-assessable" shares, it added.
For non-assessable shares, Puregold Price Club as an issuer is not allowed to impose levies on shareholders for additional funds for further investment. — Ruby Anne M. Rubio