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The Gokongwei Group is taking Robinsons Retail – the company behind Robinsons Supermarket, The Marketplace, Uncle John’s, and others – personally, arguing that RRHI’s stock market price no longer reflects the company’s true value.
MANILA, Philippines – Robinsons Retail Holdings Incorporated (RRHI) is close to delisting from the Philippine Stock Exchange (PSE) after its major shareholder, JE Holdings Inc., received enough shareholder support for its tender offer.
JE Holdings is a private company owned by the Gokongwei family and the entity making the offer to buy out minority shareholders as part of a plan to take Robinsons Retail private. RRHI’s shareholder records previously showed JE Holdings owning about 32.86% of the company, making it the largest named shareholder.
Under the tender offer, JE Holdings offered to buy the shares from the minority shareholders of RRHI at P48.30 each. The offer ran from May 25 to July 6.
By the end of the offer period, shareholders had tendered 229.58 million shares, which was more than enough for JE Holdings and other delisting proponents to reach the 95% ownership level required for voluntary delisting.
This means that enough shareholders have agreed to sell their RRHI shares to JE Holdings. However, the transfer is not yet fully completed. The issued shares are expected to be passed through the PSE on July 13 and settled on July 15.
After the process is completed, JE Holdings and other supporters of the divestment will jointly own 99.69% of RRHI. Only 0.31% of the company’s shares will remain public.
The next step is for RRHI to obtain approval from the PSE to voluntarily liquidate its shares.
Why remove the list?
Delisting does not mean that RRHI is closing. It means the company is going private. After delisting, RRHI shares will no longer be traded on the stock market, making it difficult for any remaining shareholders to sell their shares.
Gokongwei Group is pursuing the delisting because it believes that RRHI’s stock market price no longer reflects the true value of the company. By taking the company private, the group can consolidate ownership and implement its long-term plans away from the pressures of the public market.
In his bidding equipmentRRHI said it was considering delisting because “market valuations no longer reflect the intrinsic value of the company.” It said its share price remains undervalued despite its fundamentals and long-term prospects, citing market conditions and macroeconomic factors.
The company was already trying to support its stock price through acquisitions. Since approving the P2-billion buyback plan in March 2020, RRHI said it has repurchased about 510.87 million shares for a total of P24.71 billion.
In effect, the delisting allows the Gokongwei family and related lobbyists to consolidate almost full ownership of the retailer when they believe the public market is undervaluing the business. JE Holdings has been joined in the delisting push by several Gokongwei family members, including Robina Gokongwei-Pe, Lance Gokongwei, James Go, and Lisa Gokongwei Cheng.
RRHI has become one of the largest and most visible retailers in the country, with businesses that include department stores, supermarkets, DIY, convenience stores, pharmacies, and specialty stores. Its brands include Robinsons Supermarket, Handyman, True Value, Toys “R” Us, Uncle John’s, Daiso Japan, South Star Drug, and The Generics Pharmacy.
RRHI was listed on the PSE in 2013 and raised P28.12 billion from its initial public offering and general sale. During the 10th anniversary of RRHI’s listing, PSE said to raise capital helped RRHI expand from 940 stores in 2013 to 2,368 stores by September 2023.
“We are grateful for the trust and support our shareholders have shown RRHI over the years, and for their cooperation in this process,” said RRHI president and CEO Stanley C. Co. “As we embark on a new chapter, our commitment to be the retailer of choice in the Philippines remains unchanged.”
RRHI Chairman Robina Gokongwei-Pe also thanked shareholders for their support during the company’s time as a publicly listed company.
“Your unwavering support has been instrumental in shaping our growth and success, and it has been our privilege to share this journey with you,” he said. – Rappler.com
