KAREILA BUYS 100% STAKE IN S&R

S&R Membership Shopping, is in the process of reorganization. This was announced by the board of directors of Puregold Price Club Inc., the owner and operator of S&R, in a disclosure to the Philippine Stock Exchange.

Kareila Management Corp. has approved the purchase of 100 percent of the outstanding capital stock of PSMT Philippines Inc. for an agreed amount of P112.50 million. The Co family controls both PSMT Philippines Inc. and Kareila.

Puregold acquired S&R from US company PriceSmart Inc. in a share-swap deal amounting to P16.5 billion in 2012. Kareila was later formed as the holding company of the Co family in the renamed PriceSmart to PSMT Philippines Inc.

The transaction allowed Puregold, which caters to the affordable market segment, to diversify its consumer base, which now includes the high-end and middle-class markets, which S&R primarily caters to.