Dairy Farm International Hldgs Ltd DF to Partner with Robinsons in the Philippines (7381I)
March 23 2018 - 5:14AM
UK Regulatory
TIDMDFI TIDMJAR TIDMJDS
RNS Number : 7381I
Dairy Farm International Hldgs Ltd
23 March 2018
To: Business Editor For immediate release
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
DAIRY FARM TO PARTNER WITH ROBINSONS IN THE PHILIPPINES
23rd March 2018 - Dairy Farm International Holdings Limited
('Dairy Farm') today announced it has agreed to partner with
Robinsons Retail Holdings Inc. ('RRHI'), a Philippine listed
multi-format retail group based in Manila, to build a leading food
retail business in the Philippines. Dairy Farm will combine its
interest in wholly-owned Rustan Supercenters, Inc. ('RSCI') with
RRHI to leverage the combined strengths of both groups and create a
new platform for growth in one of the most vibrant retail markets
in Asia.
Dairy Farm is to exchange its interest in RSCI for new shares in
RRHI representing some 12.15% of its enlarged share capital at an
agreed price per share of PHP94 valued at some US$346 million, and
acquire a further 6.1% interest of the enlarged share capital from
the existing controlling shareholders at a cost of US$174 million.
This will give Dairy Farm a total holding of some 18.25%. The
Gokongwei family, being the controlling shareholders, will continue
to hold a 51% interest in RRHI after completion of these
transactions.
RRHI's main formats are supermarkets, department stores,
do-it-yourself stores, drugstores, convenience stores and apparel
stores, and it also holds a minority interest in Robinsons Bank.
RSCI is one of the Philippines' leading food retailers operating a
diverse brand portfolio of formats. The combined group will be one
of the top three retailers in the Philippines with over 1,700
stores.
The new partnership will combine strong local knowledge with the
international strength and experience of a leading pan-Asian
retailer. 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.
Commenting on these transactions, Dairy Farm Group Chief
Executive, Ian McLeod, said, "We are delighted to be increasing our
investment in the fast-growing Philippine food retail sector in
partnership with Robinsons Retail and the Gokongwei Family. Rustan
Supercenters and Robinsons Retail are already leading high-quality
retailers in the Philippines and we believe that our customers will
benefit from being serviced by a larger group that can use its
combined strengths and scale to improve competition, quality and
value for them. The partnership combines two strong, experienced
and talented teams, who will have access to increased future
opportunities."
The number of new RRHI shares to be issued was fixed on 14th
March 2018 when the key commercial terms for this transaction were
agreed. The transaction requires the approval of the Philippine
Competition Commission and the approval of the shareholders of
RRHI, a majority of which have undertaken to vote in favour of the
transaction. Completion is expected to take place within six
months.
On completion of the transaction, Dairy Farm will have the right
to nominate two directors to the Board of RRHI. Dairy Farm expects
to fund the investment through a combination of existing cash and
borrowings.
RSCI had sales in 2017 of PHP22 billion (approximately US$440
million) and operated
12 hypermarkets and 61 supermarkets, with no material impact to
the underlying profit of Dairy Farm. RRHI had sales in 2017 of
PHP115 billion (approximately US$2.3 billion) and operated 1,718
retail stores in the Philippines, including 154 supermarkets.
Dairy Farm is a leading pan-Asian retailer. The Group operates
many well-known brands across different formats - supermarkets,
hypermarkets, convenience stores, health and beauty stores, home
furnishings and restaurants. In 2017, the Group and its associates
and joint ventures operated over 7,100 outlets, employed some
200,000 people and had total annual sales exceeding US$21 billion.
The Group aims to provide quality and value to customers in Asia by
offering leading brands, a compelling retail experience and great
service; all provided through a strong store network supported by
efficient supply chains.
Dairy Farm International Holdings Limited is incorporated in
Bermuda and has a standard listing on the London Stock Exchange,
with secondary listings in Bermuda and Singapore. The Group's
businesses are managed from Hong Kong by Dairy Farm Management
Services Limited through its regional offices. Dairy Farm is a
member of the Jardine Matheson Group.
- end -
For further information, please contact:
Dairy Farm Management Services Limited
Linda Pham (852) 2299 1822
Brunswick Group Limited
Annabel Arthur (852) 3512 5075
This and other Group announcements can be accessed through the
internet at 'www.dairyfarmgroup.com'.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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