Puregold quits convenience store business

LUCIO Co-owned Puregold Price Club, Inc. is quitting the convenience store business via the sale of its 70 percent stake in Lawson.

Puregold told the Philippine Stock Exchange on Friday that it had accepted an offer from Lawson Japan for the sale of its equity interest in the PG Lawson, Inc. joint venture.

“The divestment decision will enable Puregold to rebalance its risks portfolio in the grocery retail sector and focus its resources in the further development and strengthening of the Puregold brand,” the listed firm said.

A share purchase agreement was signed on Thursday for 4.9 million PG Lawson shares, to be paid for in cash. The amount of consideration received is “less than 10 percent of the total asset of the company,” Puregold said in the disclosure.

Puregold partnered with the Lawson group in 2014 to bring the Japanese convenience store chain to the Philippines, with target of rolling out 500 stores by 2020. Based on previous reports, it had established 33 outlets as of the end of last year.

Puregold, which also operates the S&R, Budgetland and NE Bodega supermarket brands among others, earlier this month reported a consolidated net income of P5.84 billion for 2017, up 5.7 percent from a year earlier on the back of strong results from Puregold and S&R stores.

The company’s shares closed 0.21 percent higher on Friday at P47.50 per share. ANGELICA BALLESTEROS