(Source: Business World | September 1, 2015)
Robinsons Retail Holdings, Inc. (RRHI) has secured a controlling stake in a 24-strong consumer electronics and appliance retail chain, giving it access to more markets outside the Philippine capital to as far as the Cagayan Valley.
The Gokongwei-led multi-format retailer told the stock exchange yesterday it acquired 90% of Savers Electronic World, Inc., which owns and operates Saver’s Appliance Depot.
RRHI did not disclose the acquisition cost, only saying the deal was valued at less than a tenth of the listed firm’s stockholders equity as of end-December 2014.
Saver’s Appliance Depot has 24 stores with a total gross floor area of 25,900 square meters. It has three stores in Metro Manila, 13 stores in Central Luzon and eight stores in Cagayan Valley.
RRHI said the transaction will strengthen and grow its footprint in the consumer electronics and appliance business, particularly in Central Luzon and Cagayan Valley. The listed firm is retaining Jaime Uy as Saver’s Appliance Depot’s managing director.
“As the economy expands, discretionary spending is seen to surge ahead and this format should be a strong beneficiary,” RRHI President and Chief Operating Officer Robina Gokongwei-Pe was quoted in the statement as saying.
“Also, the increasing scale of the group is expected to strengthen our market position in the industry,” Ms. Pe said.
Ms. Gokongwei-Pe had said in March RRHI would allocate P6 billion this year for capital expenditures, higher than the P4 billion spent in 2014, to support store network expansion mostly outside the Philippine capital.
The retailer is adding 270-300 stores that will boost gross floor area in the mid-teens level and increase store count to close to 1,600 stores by the end of the year.
RRHI owns the “Handyman Do it Best”, “True Value”, “Ministop”, “Topman” and “Topshop” brands. — Krista Angela M. Montealegre