Metro buys Wellworth assets of Ayala, SSI
LISTED Cebu-based retailer Metro Retail Stores Group, Inc. has acquired the Wellworth department store assets of SIAL Specialty Retailers, Inc. in Fairview Terraces Mall and UP Town Center Mall as part of its expansion program.
Metro, a unit of the Gaisano-led Vicsal Development Corp., signed a deed of absolute sale with SIAL on March 1, the company said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday.
SIAL is a joint venture company owned 50 percent each by Ayala Land, Inc. and the SSI Group, Inc. of the Tantoco family, which also operates the FamilyMart chain of convenience stores in the Philippines.
The acquisition expands Metro’s network of department stores by approximately 25,000 square meters in terms of gross floor area from the estimated 400,000 square meters at present.
In a separate disclosure, Metro said it has used P124.7 million out of its initial public offering (IPO) proceeds as partial payment for the Wellworth assets.
The IPO in November last year raised about P3.6 billion.
Metro currently has 47 stores across its three retail formats, making it the biggest department store and hypermarket operator in the Visayas.
The company aims to open 50 to 70 more stores in the next five years.
Metro shares, which debuted at P3.99 apiece in November last year, were up 5.36 percent yesterday to close at P3.54 per share.
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