DAIRY FARM AND ROBINSONS RETAIL PARTNER TO BUILD A LEADING FOOD RETAIL BUSINESS IN THE PHILIPPINES

DAIRY FARM AND ROBINSONS RETAIL PARTNER TO BUILD A LEADING FOOD RETAIL BUSINESS IN THE PHILIPPINES

23rd March 2018 – Dairy Farm International Holdings Limited (“Dairy Farm”) today announced it has agreed to partner with Robinsons Retail Holdings Inc. (“RRHI”) in the Philippines to build a leading food retail business, leveraging the combined strengths of both groups to build an exciting platform for future growth.

This transaction will result in Dairy Farm injecting Rustan Supercenters, Inc. into RRHI in exchange for a 12.15% stake in RRHI, while also taking an additional stake in the business from the Gokongwei family, bringing Dairy Farm’s total stake to 18.25%. Dairy Farm will retain its presence and influence through its stake in the combined business and two seats on the board. The transaction is subject to certain regulatory approvals, and is expected to take up to six months to complete.

The Philippines is one of the fastest growing retail markets in Asia, and this merger will allow the expanded business to better cater for the needs of the customer, differentiate its retail brands by customer segment, and deliver better quality and value to customers.

This partnership combines strong local knowledge with the international strength and experience of a leading pan-Asian retailer. By joining forces, Dairy Farm will maintain its strong presence in the Philippines, and as a top three retail player with over 1,700 stores, the combined business will contribute to the growth of the consumer market with better products, services and experiences.

Commenting on the merger, Dairy Farm Group Chief Executive, Ian McLeod, said, “We are delighted to be increasing our investment in the fast-growing Philippine food retail sector in partnership with Robinsons Retail and the Gokongwei Family. Rustan Supercenters and Robinsons Retail are already leading high-quality retailers in the Philippines and we believe that our customers will benefit from being serviced by a larger group that can use its combined strengths and scale to improve competition, quality and value for them. The partnership combines two strong, experienced and talented teams, who will have access to increased future opportunities.”

“We see our partnership with Dairy Farm as a prime avenue to further enhance and widen the scope of modern retail penetration in the country. With decades of combined experience in the retail industry, we at Robinsons Retail and Rustan Supercenters have built upon our independent reputations as two of the most trusted brands in the Philippine food retail market. We are optimistic that with our partnership, we can deliver even better customer shopping experience. For the future, we aim to cultivate a legacy that genuinely enriches the lives of fellow Filipinos”, said Lance Y. Gokongwei, Chairman and Chief Executive Officer of RRHI.

 

Dairy Farm

Dairy Farm is a leading pan-Asian retailer. The Group operates many well-known brands across different formats - supermarkets, hypermarkets, convenience stores, health and beauty stores, home furnishings and restaurants. In 2017, the Group and its associates and joint ventures operated over 7,100 outlets, employed some 200,000 people and had total annual sales exceeding US$21 billion. The Group aims to provide quality and value to customers in Asia by offering leading brands, a compelling retail experience and great service; all provided through a strong store network supported by efficient supply chains.

Dairy Farm International Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group’s businesses are managed from Hong Kong by Dairy Farm Management Services Limited through its regional offices. Dairy Farm is a member of the Jardine Matheson Group.

 

RRHI

Robinsons Retail Holdings Inc. (RRHI) is one of the Philippines’ leading multi-format retailers with over three decades of experience in the market. It operates a diverse brand portfolio of formats: supermarket, department store, do-it-yourself, drugstore, convenience store, consumer electronics and appliances, toys, one-price concept store, international fashion and beauty specialty stores, and specialty coffee shops. In 2017, it achieved a store network of over 1,700 stores alongside more than 2,000 franchised branches of The Generics Pharmacy. Annual sales in 2017 hit Php115.2 billion (US$2.22 billion).

The company serves as anchor tenants for Robinsons Malls and has strong ties with other leading mall developers in the country. It also has a 20% stake in leading beauty ecommerce site, BeautyMNL.com.

RRHI strives to foster meaningful relationships with various business partners and create career opportunities for its diverse workforce, employing around 15,000 across all its formats.

RRHI is incorporated in the Philippines and is listed at the Philippine Stock Exchange.