METRO Retail Stores Group, Inc. (MRSGI) is creating a new pharmacy unit by acquiring Apple Drugstore Corp. from its principal stockholder and making the firm a wholly owned subsidiary.
In a disclosure on Friday, Metro Retail said that last April 4, its board of directors approved the acquisition of Apple Drugstore via the sale of 2,500 common shares held by Viscal Development Corp. (VDC) at P100 apiece or a total of P250,000.
“MRSGI will centralize and manage its pharmacy operations through the creation of a wholly-owned subsidiary, Apple Drugstore Corp.,” the company said.
“The acquisition of Apple Drugstore Corp. is a strategic move to create a dedicated platform or vehicle for optimum operational efficiency, increased flexibility, enhanced focus and performance, and unlocking value,” it added.
The transaction value constitutes less than 10 percent of MRSGI’s total book value, with the company adding that full payment will be made in cash upon signing of the deed of conveyance of shares of stock.
Conditions precedent to closing of the deal include the approval of both companies’ boards and stockholders owning at least two-thirds of the outstanding capital stock of Apple Drugstore.
On Friday, Metro Retail shares rose 2.36 percent to close at P1.30 each.
