COSCO Capital, Inc. has signed a joint venture agreement with Siam Global House Public Co. Ltd. to operate a one-stop home improvement warehouse.
“The consideration or contribution of Cosco Capital in the joint venture agreement is less than 10% of the company’s total book value,” the listed retail holding firm said in a disclosure on Monday.
The warehouse will hold building and construction-related materials, home and garden decorative goods, home improvement goods, construction equipment, and tools.
For its initial capital, the joint venture will have P500 million — 55% for Siam Global and 45% for Cosco Capital. The agreement was forged on June 17 at the foreign company’s head office in Roi Et, Thailand.
Cosco Capital said the joint venture is “looking to finalize, construct and open” three to five stores in the next 12 to 18 months in the National Capital Region, Calabarzon (Batangas, Cavite, Laguna, Quezon, and Rizal) and Region 3, or Central Luzon.
Siam Global is a Thailand-based firm with 76 stores selling building materials and home decorative products.
Cosco Capital is an investment holding company with diverse interests in retail, wine and alcohol distribution, real estate, and mining. The group’s subsidiaries include Puregold Price Club, Inc., Ellimac Prime Holdings, Inc., and Office Warehouse, Inc., among others.
In the first quarter, the company reported that its consolidated net income increased by 10.9% to P2.71 billion. Consolidated revenues were also up by 2.8% to P40.68 billion from P39.57 billion.
On Monday, Cosco Capital shares climbed by 2.36% or 10 centavos to close at P4.34 at the stock market. — Luisa Maria Jacinta C. Jocson