DFI Retail Group has sold its 22.2 per cent stake in Robinsons Retail Holdings Inc (RRHI) for US$270 million as the company refocuses investment on its core operating businesses across Asia.

The transaction was completed via a special block sale on the Philippine Stock Exchange and involved 315.31 million shares priced at $0.90 per share – a 36.2 per cent premium to RRHI’s current market price.

GCH Investments, a wholly owned subsidiary of DFI Retail Group, first became a shareholder in RRHI in 2018 following the Philippine retailer’s acquisition of Rustan Supercenters.

Scott Price, Group CEO of DFI, said the divestment would enable the company to redeploy its capital more effectively.

“This transaction represents a step in our evolution as an operating company, enabling us to redeploy capital to support growth and enhance shareholder returns across our subsidiary businesses,” said Price.

DFI Retail Group operates a broad portfolio of banners across Asia, including Wellcome, Food World, and Cold Storage supermarkets; 7-Eleven convenience stores; and Mannings and Guardian health and beauty outlets.

Founded in 1980, RRHI operates a wide range of retail formats in the Philippines, including supermarkets, department stores, drugstores, and DIY chains.

The company said in a recent filing that the buyback aligns with its capital allocation strategy and reflects confidence in its long-term prospects.

“The ongoing share repurchase program reflects the company’s belief that current market prices do not fully reflect the underlying financial strength and long-term growth prospects of RRHI.”

RRHI CEO Stanley Co credited DFI with supporting the group’s expansion into new categories.

“Our acquisitions of Rustan Supercenters in 2018 and Rose Pharmacy in 2020 enabled us to enter the premium food retail segment and strengthen our drugstore network,” said Co.

“The partnership also allowed RRHI to become the exclusive distributor of DFI’s private-label brands, Meadows and Guardian. We are deeply grateful for the partnership we have forged with DFI.”

Despite DFI’s exit, RRHI will continue to exclusively distribute Meadows and Guardian products in the Philippines.

Author Credits- Kaycee Enerva
Inside Retail