Robinsons Retail Holdings, Inc. (RRHI) has successfully reacquired 315.3 million common shares, representing 22.2% of RRHI’s common shares previously held by GCH Investments Pte. Ltd. (GCH), a subsidiary of DFI Retail Group (DFI).
The transaction was executed through a special block sale on the Philippine Stock Exchange following the fulfillment of closing conditions.
This strategic buyback is part of RRHI’s ongoing efforts to optimize capital allocation and enhance value for its stakeholders.
The company believes that current market prices do not fully reflect its financial strength and long-term growth prospects, making this repurchase a timely and beneficial move.
“DFI has been instrumental in RRHI’s growth over the last few years,” said RRHI President and CEO Stanley C. Co. “Our acquisition of Rustan Supercenters, Inc. (RSCI) in 2018 and Rose Pharmacy in 2020 from DFI allowed us to enter the premium food retail business and expand our drugstore presence in the Visayas and Mindanao regions.
This partnership also enabled RRHI to become the exclusive distributor of DFI’s private label brands – Meadows and Guardian – in the Philippines. “For this, we are deeply grateful for the collaboration we have forged with DFI through the years,” said Co.
Co emphasized that the exclusive distribution arrangement for Meadows and Guardian brands will continue following this transaction.
“These brands continue to gain traction in the market and reflect our shared commitment to providing consumers with innovative and affordable options. We remain aligned with our commercial objectives and look forward to strengthening this collaboration in the years to come,” Co added.
The transaction price was determined through mutual agreement between RRHI and GCH, taking into account prevailing market conditions and strategic considerations.
RRHI funded the share repurchase through a combination of internal resources and external borrowings, while maintaining ample financial flexibility after the buyback.
