In a disclosure to the Philippine Stock Exchange on Thursday, Dec. 26, 2024, the company said the decision was made on Dec. 23, 2024, and was mutually agreed upon after a strategic review of current market conditions.
The joint venture, approved by Cosco Capital’s board of directors in June 2022, involved a total investment of P500 million, with Siam Global holding a 55-percent stake and Cosco Capital retaining 45 percent.
The agreement originally outlined plans for the incorporation of a new company with the Philippine Securities and Exchange Commission within three to four months of its signing. However, both parties have since decided not to proceed.
Siam Global House, a Thailand-based retail chain with 76 stores, and Cosco Capital, a diversified holding company, initially saw the venture as an opportunity to expand their market reach. For Cosco Capital, the joint venture was part of its strategy to diversify its portfolio and create a new revenue stream.
Profit-sharing and management decisions were to be based on equity stakes, with regulatory approvals required for incorporation and local operations.
The termination of the agreement will halt Cosco Capital’s planned foray into a new business segment and partnership with a foreign retailer. However, both companies expressed mutual understanding in discontinuing the project, citing the evolving business environment.
No material relationship existed between the parties outside of the joint venture agreement. Both companies will independently explore future opportunities in their respective markets, the firm said.
