Robinsons Retail Holdings Inc. is acquiring the motorcycle retailing business of Lance Gokongwei, Premiumbikes Corp., for P146.4 million.
Gokongwei is the chief executive officer (CEO) and president of JG Summit Holdings Inc., the parent company of Robinsons Retail.
Robinsons Retail told the Philippine Stock Exchange, on Monday, July 28, that its unit Robinsons Supermarket Corp., signed Monday, the share purchase agreement for the transaction to acquire 100 percent of Premiumbikes. The purchase price is equivalent to the Premiumbikes’ audited book value for 2024, Robinsons Retail said.
Premiumbikes has 214 stores nationwide. “Robinsons Retail engaged a third-party financial consultant to prepare a fairness opinion and valuation report on the Premiumbikes shares. The transaction was reviewed by Robinsons Retail’s Related Party Transaction Committee, which subsequently endorsed it to the Board of Directors for approval,” the company said.
The acquisition is subject to customary closing conditions, including regulatory clearance from the Philippine Competition Commission.
Robinsons Retail stated that, with consistent profitability over the past few years, Premiumbikes has become well-positioned for integration into its operations.
“For full-year 2024, Premiumbikes reported net sales of P4.17 billion, up 15.2 percent year-on-year, and EBITDA of P324.2 million, up 36.7 percent. This acquisition enables Robinsons Retail to enter the growing motorcycle market in the Philippines, in line with its strategy to diversify revenue streams and expand into profitable retail formats,” it said.
Robinsons Retail noted that a rising demand for motorcycles indicates a “promising industry outlook.”
“The market remains underpenetrated, with a motorcycle possession ratio of eight people to one motorcycle (8:1) in the Philippines, compared to 4:1 in Indonesia and Vietnam, and 3:1 in Thailand,” it added.
