Lucio Co's hike in PBCom stake to boost Puregold

Posted at 08/18/14 7:15 PM

MANILA, Philippines – Lucio Co's move to become the controlling shareholder in the Philippine Bank of Communications (PBCom) will likely boost the operations of Puregold as well as Co's other consumer businesses, an analyst from Maybank ATR Kim Eng said.

Co will increase his stake in PBCom to 50 percent from the current 38 percent with a new deal to buy the stake held by British fund Ashmore.

The additional stake will cost Co around P1.95 billion, placing his total investment in PBCom at nearly P8 billion.

“We think that since Lucio Co has already made a large presence in the consumer space, we think he may able to create some synergies by acquiring a bank in terms of, let's say, you’re in the supermarket business, and if he has a commercial bank then there could be synergies in terms of credit cards and consumer banking, he sees to take advantage of,” said Ramon Tejero, e-commerce head at Maybank ATR Kim Eng

The analyst also expects the Philippine stock exchange index to hit the 8,000 level next year. -- ANC