RRHI buys back 22.2% stake via P15.77-B deal

Robinsons Retail Holdings Inc. (RRHI) has taken a significant step toward regaining greater control of its future by repurchasing 315,309,310 common shares, representing a 22.2 percent ownership stake, from GCH Investments Pte. Ltd., a subsidiary of DFI Retail Group.

The transaction, completed via a special block sale on the Philippine Stock Exchange, was priced at P50 per share, totaling approximately P15.77 billion. This figure represents a 36.2 percent premium over RRHI’s current market price of P36.70 per share.

The bold move drew a positive market response, with RRHI shares rising nearly eight percent during Friday’s morning session. The stock later settled at P37.95, up 3.41 percent from the previous day.

GCH Investments is owned by DFI Retail Group, formerly known as Dairy Farm International. DFI became a significant minority shareholder of RRHI in 2018, when Robinsons Retail fully acquired Rustan Supercenters Inc. (RSCI) through a share swap.

DFI subsequently increased its stake in RRHI by purchasing secondary shares from members of the Gokongwei family and other investors.

“DFI has been instrumental in RRHI’s growth over the last few years,” said RRHI president and CEO Stanley Co.

“Our acquisition of 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, as we added The Marketplace, Shopwise, and Rose Pharmacy to our portfolio.”

Capital base strengthened

Co emphasized the significance of the buyback, stating: “By reacquiring these shares, RRHI is strengthening its capital base and asserting greater independence to pursue aggressive growth strategies. This move reflects our belief that current market prices do not fully capture the company’s intrinsic value, and we are committed to unlocking this value for our shareholders.”

Despite the shift in ownership dynamics, RRHI confirmed that its exclusive distribution partnership with DFI’s private-label brands, Meadows and Guardian, will continue without disruption, ensuring consumers still benefit from trusted and affordable products.

“These brands continue to gain traction in the market and are a testament to our shared commitment to providing consumers with innovative and affordable options,” Co added.

The transaction was funded through a combination of internal resources and external borrowings, in line with RRHI’s broader capital optimization strategy.

“RRHI views this buyback transaction as a strategic move to optimize capital allocation and create more value for its stakeholders,” the company said in a report to the stock market.