Co is spinning off his liquor and wine business distribution business under Cosco Capital to his shell company, Da Vinci Capital Holdings Inc.
Through a backdoor listing, Co will give investors a pure play on his popular liquor brands – Alfonso, Johnnie Walker, Jim Beam, Chivas Regal, Absolut, The Patron, and Cuervo in competition with publicly-listed rivals Emperador of Andrew Tan and Ginebra San Miguel.
In a special board meeting on 22 February 2021, the Da Vinci board chaired by Co approved the shares swap transaction in which the shell firm would get 100 percent interest in Montosco, Meritus Prime Distributions, and Premier Wine and Spirits from Cosco, Co’s holding firm.
This would leave Cosco with grocery (Puregold), retail (Office Warehouse), real estate, and oil exploration (Alcorn Petroleum) remaining in its investment portfolio.
The Da Vinci board has left it to its management “to determine the final terms and conditions of the Share Swap, including the price/ratio, etc.”
Aside from the shares swap, the Da Vinci board also approved Invescap’s subscription of 25 percent of the firm’s proposed increase in the authorized capital stock from P327.6 million to P2 billion at par value.
Co controls Invescap which has an 85 percent stake in Da Vinci.
Da Vinci also planned to conduct a follow-on-offering to comply with the minimum public ownership requirement.
Da Vinci revealed that Jose Paulino L. Santamarina, president of Montosco, would be president of Da Vinci.
The Philippine Stock Exchange imposed a trading halt on Da Vinci shares after its disclosure “in view of the materiality of the foregoing information, and subject to the Exchange’s further evaluation of the transaction disclosed by the corporation.”
DAVIN last traded at P6.50 on February 19 after trading a record high of P10.40 on February 11.