Cos’ P5-B paper wealth from private placement



BUSINESSMAN Lucio Co and his family showed the public why it pays to wait for a stock’s price to climb before selling.

No. They are not selling their holdings in any of their companies listed on the Philippine Stock Exchange.

The computations in this piece show their paper gains only from their acquisition of 575 million shares offered by Cosco Capital Inc. thru private placement.

In 2010, Cosco undertook a private placement of 575 million shares at P1 par value. It sold the equity exclusively to the Cos and three corporate stockholders the family own. Ellimac Prime Holdings Inc. paid for 200 million shares; VFC Land Resources, 125 million shares; and KMC Realty Corp., 100 million shares.

As the father of the family, the husband got 50 million shares. Like the four other family members, his wife Susan subscribed to 20 million shares.

With the private placement, Cosco’s outstanding shares increased 8.418 percent to 7.405 billion shares from 6.83 billion.

More importantly, the Cos got much richer in paper as the value of the 575 million shares that they bought at P1 par value had gone up. Based on Friday’s closing price of P8.63, their P575-million Cosco shares had a market value of P4.962 billion.

Exclusive to the Cos
The filing posted on the PSE website related the details of Cosco’s private placement of 575 million shares. Approved by the company’s seven-person board approved on March 26, 2010, the shares were issued on April 26, 2010 and fully paid for on Dec. 4, 2012 by the Cos and their companies.

Finally, Cosco said in the same PSE posting the Cos, who are the company’s majority stockholders, led in ratifying the issuance of 575 million shares to them and their three companies during the annual stockholders’ meeting on June 27, 2014.

All the 575 million Cosco shares were lodged with PCD Nominee Corp. To the public, the lodging meant more Cosco shares available for trading.

Updated ownership
A public ownership report (POR) as of April 13 showed the seven members of Cosco’s board owned 4.111 billion shares, or 55.67 percent.

Among these insiders, Lucio L. Co, chairman, and Susan P. Co, vice chairman, owned 2.322 billion Cosco shares, or 31.44 percent, and 1.78 billion Cosco shares, or 24.11 percent, respectively. Their combined holdings of 4.102 billion shares, or 55.55 percent, make them Cosco’s majority stockholders.

The same POR listed the other five members of the board and their holdings as follows: Leonardo B. Dayao, president, 650,982 Cosco shares; Eduardo F. Hernandez, 120,000 shares; Levi B. Labra, 100 shares; Robert Y. Cokeng and Oscar S. Reyes, independent directors, 8.155 million shares, or 0.11 percent, and 54,264 shares, respectively.

Principal stockholders
Under the heading principal stockholders, are individuals, led by the Co children, who held as of the date of POR filing 575.923 million Cosco shares, or 7.81 percent.

Among the Cos, Katrina Marie is the “minority.” Cosco’s POR credited her with 35.105 million shares, or 0.52 percent, which she indirectly owned.

Incidentally, Katrina Marie increased the number of shares she owns in Cosco Capital Inc. by 1 million to 32.724 million shares, or 0.44 percent. Her lawyer, Candy H. Dacanay-Datuon bought the shares at P8.52 each for her as her attorney-in-fact.

Aside from Katrina Marie, Cosco’s other stockholders and their individual holdings are as follows: Ferdinand Vincent, 209.557 million shares, or 2.84 percent; Pamela Justine, 209.535 million shares, or 2.84 percent; and Camille Clarisse, 83.295 million shares, or 1.13 percent.

Recomputed ownership ratio
Also listed in the POR as principal stockholders are Jose Paulino Santamarina with 35.105 million Cosco shares, or 0.48 percent; and Baby Gerlie I. Sacro, four shares.

Under the heading affiliates, Cosco’s POR listed eight corporate stockholders which combined for 722.739 million shares, or 9.78 percent.

In summing up its POR, Cosco defined as non-public the ownership of 5.409 billion shares, or 73 percent, and as public 1.975 billion, or 27 percent.

When recomputed based on 7.384 billion outstanding shares, the results showed 5.409 billion as non-public shares equivalent to 73.258 percent while publicly owned 1.975 billion shares represented 26.742 percent of the outstanding.


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