Davin acquires liquor retailers for P22.5B in backdoor listing move

Retail magnate Lucio Co’s backdoor-listing vehicle for his liquor businesses, Da Vinci Capital Holdings Inc. (Davin), executed a share-swap deal that allowed it to gobble up three liquor retailing firms under main holding firm Cosco Capital Inc. for P22.5 billion.

Davin disclosed to the Philippine Stock Exchange on Monday the deed of exchange with Cosco had been executed on June 18.

Under the deal, Cosco agreed to transfer 100 percent of its shares in Montosco Inc., Meritus Prime Distributions Inc. and Premier Wine and Spirits Inc. (PWSI) to Davin in exchange for the issuance of a total of 11.25 billion common shares at P2 apiece to Cosco.

SEC confirmation

The next step is for Davin to seek approval from the Securities and Exchange Commission (SEC) to jack up its authorized capital stock while Cosco will subscribe to new shares in exchange for the interest in the three liquor firms.

Davin will get 7.5 million shares of Montosco, 7.5 million shares of Meritus and 1.5 million shares of PWSI.

Based on the disclosure, Davin will likewise seek SEC confirmation on its exemption from registration of securities and the valuation of the shares to be received from Cosco pursuant to the share-for-share swap.

Upon approval of the SEC, the parties will apply for a certificate authorizing registration with the Bureau of Internal Revenue.

The additional shares of Davin are intended to be listed on the Philippine Stock Exchange within the year.

The plan is for Co’s group to inject three of his liquor distribution companies to Davin and rename the company The Keepers Holdings Inc., which will be a purely alcoholic beverage retail play.

The group believes the backdoor listing will unlock the strategic values of liquor companies through a pure liquor and wine distribution listed company in the capital market, the platform they deem will further grow and expand the business. INQ