GOKONGWEI-LED Robinsons Retail Holdings, Inc. (RRHI) is entering the motorcycle dealership business through its P146.4-million acquisition of Premiumbikes Corp., after signing a definitive share purchase agreement, subject to regulatory approval.
RRHI, through its subsidiary Robinsons Supermarket Corp., signed a share purchase agreement to acquire 100% of Premiumbikes from Lance Y. Gokongwei, the president and chief executive officer (CEO) of parent company JG Summit Holdings, Inc.
The deal involves the acquisition of 20.15 million shares at P7.27 per share, with the transaction value equivalent to 1.0x the audited book value of Premiumbikes for 2024, RRHI said in a regulatory filing on Monday.
Premiumbikes had 214 stores nationwide as of end-June. It carries motorcycle brands such as Honda, Yamaha, Suzuki, Kawasaki, Kymco, and TVS.
For 2024, Premiumbikes grew its net income by 15.2% to P4.17 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 36.7% to P324.2 million.
RRHI said the acquisition signals its entry into the growing Philippine motorcycle market and supports its plan to diversify revenue streams.
“This acquisition marks a key milestone for our company as we enter a new and fast-growing category that is also profitable,” RRHI President and CEO Stanley C. Co said.
“This move reflects our commitment to enhancing the retail experience and providing accessible, reliable, and affordable products that meet the evolving needs of Filipino consumers,” he added.
RRHI said the acquisition is still subject to customary closing conditions, including regulatory clearance from the Philippine Competition Commission.
“The Philippines still has a low motorcycle penetration ratio compared to other Southeast Asian markets, which gives us a lot of room to grow,” Premiumbikes General Manager Joselito O. Pojol said.
AP Securities, Inc. Research Analyst Cholo Miguel C. Ramirez said in a Viber message that the acquisition will provide a boost to RRHI’s financials.
“Based on current details disclosed, the acquisition of Premiumbikes could potentially be earnings accretive as both sales and EBITDA in 2024 were up by double digits year-on-year,” he said.
“While 2025 sales could also be stronger, underpinned by higher motorcycle sales, which from January to May 2025 are already up by 8.31% year-on-year versus the same period last year’s 1.02% growth year-on-year,” he added.
As of end-May, Philippine motorcycle sales rose by 8% to 746,016 from 688,790 in the same period last year, based on data from the Federation of Asian Motorcycle Industries.
In a separate disclosure, RRHI’s board approved the retirement of 158.39 million treasury shares, which the company said has no effect on its operations.
“As a consequence of retirement, the treasury shares are no longer re-issuable,” RRHI said.
The company’s board also approved the election of Mr. Gokongwei as a board director. He filled one of the board seats made vacant by the resignations of Scott Price and Curtis Liu, which took effect on May 30.
Mr. Gokongwei was also concurrently appointed as chairman of RRHI’s remuneration, nomination, and succession planning committee, replacing Robina Gokongwei Pe, who remained as a member.
RRHI is the retail arm of JG Summit. As of end-March, RRHI had 2,448 stores, comprising 760 food stores, 1,131 drugstores, 50 department stores, 225 DIY stores, and 282 specialty stores. It also operates 2,116 franchised stores under The Generics Pharmacy brand.
RRHI shares rose by 0.38% or 15 centavos to P39.60 per share on Monday. — Revin Mikhael D. Ochave