Lance Gokongwei is set to join the wave of Philippine companies going private, announcing a P17.2 billion buyout plan for Robinsons Retail Holdings, Inc. (RRHI). The move aims to delist the family-owned retail giant from the Philippine Stock Exchange (PSE), offering minority shareholders an exit at P48.30 per share, a 23.1% premium over the stock’s closing price of P39.25 on Thursday, March 26.
Strategic Benefits for Shareholders
The buyout will be executed through Gokongwei’s JE Holdings, Inc., which currently holds 46.1% of RRHI. Combined with other directors and insiders, Lance Gokongwei and sister Robina Gokongwei Pe each hold 8.63%, while their uncle James Go owns 3.19%; the family controls a majority stake. Public shareholders account for 33.44%, or roughly 356.4 million shares, which JE Holdings aims to acquire under the tender offer.
This voluntary proposal is designed to provide minority investors with a premium exit while giving the company more flexibility outside the stock market. To proceed, JE Holdings and its affiliates must reach at least 95% ownership of RRHI’s outstanding shares.
The tender offer is subject to regulatory and corporate approvals, including clearance from the Philippine Competition Commission, board consent with at least two-thirds approval, including independent directors, and two-thirds shareholder approval. Votes against the plan must not exceed 10% of listed shares.
Trading in RRHI shares was suspended on March 27 to allow investors time to consider the offer and will resume on March 30.
