Da Vinci said in a disclosure to the stock exchange its board of directors approved the acquisition of a 100-percent stake in three liquor firms from Cosco Capital Inc., the listed holding company of the Co family.
These are Montosco Inc., the exclusive Philippine importer and distributor of Spanish brands Alfonso Brandy and Vino Fontana; Meritus Prime Distributions Inc., which distributes premium wine and whiskey brands from Beam International, Jim Beam and Maker’s Mark; and Premier Wine and Spirits Inc., the exclusive Philippine dealer of brands like Chivas Regal Scotch Whisky, Glenlivet Single Malt, Martell Cognac and Absolut Vodka.
Cosco Capital in exchange will acquire the controlling stake in Da Vinci.
Da Vinci will conduct a share sale to comply with the minimum public ownership requirement and remain listed in the local bourse.
The company said the terms and condition of the follow-on offering would be determined by the management.
Da Vinci, to accommodate the acquisition of the three liquor firms, is increasing its authorized capital stock to P2 billion from P327.6 million. The board of Da Vinci also approved Investcap Inc.’s subscription of 25 percent of the proposed increase in the authorized capital stock of Da Vinci.
The company said it would also apply with the Bureau of Internal Revenue for a tax-free exchange ruling.
Cosco Capital’ portfolio will still include grocery retail, real estate and property leasing and specialty retail, with the sale of its liquor firms.
The Philippine Stock Exchange on Monday suspended the trading of Da Vinci. Shares of Da Vinci were last traded on Friday when it closed at P6.50 per share. The price hit a 52-week high of P10.34 on Feb. 11.
The share price of Cosco Capital rose 0.8 percent Monday to P5.38.
Co acquired Da Vinci, formerly known as Mariwasa Siam Holdings Inc., in 2013.
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