SEC okays capital hike for Lucio Co holding firm

MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved the capital hike of Cosco Capital Inc., paving the way for the creation of a P70-billion holding firm for the businesses of Puregold owner Lucio Co.

In a notice, the SEC said it allowed the increase in capitalization of Cosco Capital to P10 billion from P3 billion.

The increase in authorized capital was approved by the board of directors of Cosco Capital, which was formerly Alcorn Gold Resources Corp.

Given the approval, Cosco Capital will increase its subscribed and paid-up capital by 4.987 billion shares to 6.262 billion.

SEC said the subscription price is P74.81 billion in exchange for shares of Puregold, Ellimac, Go Fay, SVF Corp., Nation Realty, 118 Holdings, Patagonia Holdings, Fertuna Holdings, Premier Wine & Spirits, Montosco Inc., Metirus Prime and Pure Petroleum that will all be folded to Cosco Capital.

“The transfer value of P74.81 billion was based on the valuation reports rendered by Pricewaterhouse Coopers,” SEC said.

The acquisition of Co’s businesses will be made through a subscription to the increase in the firm’s capitalization from P3 billion to P10 billion.

The company is also spinning off its oil and mineral assets to a wholly-owned subsidiary. As of end-September this year, Co held a majority 59.77-percent interest in Alcorn Gold.

Montosco, Meritus, Premier Wine and Spirits are exclusive distributors in the Philippines of well-known imported brands of wine, spirits, beer and other beverages from Europe, US and other countries.

Ellimac Prime, Pajusco Realty, Cosco Prime, Pilgor Development Services and 514 Shaw Property Holdings Inc. are all lessors and developers of commercial properties. These companies are currently undergoing a merger with Ellimac Prime as the surviving company.

Puregold Properties is a developer of residential and vacation houses. Its primary project is located in Tagaytay City.

Pure Petroleum, on the other hand, is a lessor to a number of petroleum companies of oil storage tanks and facilities inside the Subic Bay Freeport Zone in Olongapo City. In the same freeport, Fertuna Holdings Corp. owns a commercial building that it leases to Puregold Supermarket.

“Such transactions are being entered into to incorporate the shareholdings of the Co family and improve the value of Alcorn,” the company earlier said.

Cosco Capital said the reorganization or spin-off of Alcorn’s oil and mineral assets is intended to achieve a more focused and efficient management of the company’s business as a holding company.