Retail chain Puregold Price Club Inc (Puregold) has gained approval from the Securities and Exchange Commission for its merger with three supermarket companies owned by Estenso Equities Inc ― its 50-50 joint venture with Ayala Land Inc (ALI).
These companies are Daily Commodities Inc, First Lane Super Traders Co Inc, and Goldtempo Company Inc. The deal is to take the “Puregold” store count to 324 in the Philippines.
The three Estenso Equities units are composed of 17 stores mostly located in Cabanatuan City, and provinces of Rizal, Bulacan, and Aurora. They will all soon carry the brand name and be converted to Puregold stores.
Under the merger terms, Puregold will issue paid in capital of up to $10.9 million (P922.7 million), and also common shares pegged at P14.5 million.
Puregold’s approved merger plan came following its acquisition of five B&W (Black & White) stores in Roxas City, Capiz last August which bolstered its store presence in the Western Visayas Region.
Established in 1998, Puregold has evolved from one hypermarket into developing an omni-market presence. It recently claimed to work with over 1,500 suppliers and trade partners, and serving over 300,000 sari-sari (mini retail) stores and small businesses as well as over one million Puregold Perks members.
In July 2013, Puregold and ALI formed Estenso Equities which also serves as the holding company of PG Lawson Inc, Ayagold Retailers Inc, and San Roque Supermarkets. ALI is the property arm of diversified conglomerate Ayala Corp.
Puregold reported last November 16 that it recorded consolidated net income of P3.9 billion in the first nine months of 2017 which represents a 7 per cent growth compared to P3.64 billion in the same period in 2016. Consolidated net margins for the period is at 4.5 per cent.
The company’s trading price in the Philippine Stock Exchange closed at P49 per share on Monday (November 27), which was up 1.98 per cent or P0.95 from Friday’s P48.05.