RRHI delisting seen to enable strategic reset

By Alexandria Grace C. Magno, Reporter

ROBINSONS RETAIL Holdings, Inc.’s (RRHI) plan to voluntarily delist from the Philippine Stock Exchange is seen to enable a strategic reset, analysts said, as the move may also help address undervaluation.

“It appears that our local public equity market has not provided the company with enough reason to stay listed, given the stock’s persistent undervaluation and low trading liquidity,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“The fact that the tender offer price of P48.30 is below the P50 buyback price for DFI Retail Group last year may invite some questions, but the latest valuation may have been affected by a change in circumstances and outlook,” he added.

Last week, RRHI said its board approved the voluntary delisting of its shares from the PSE, following a notice of intent from controlling shareholder JE Holdings, Inc. to conduct a tender offer.

The Gokongwei-led retailer said JE Holdings plans to launch a tender offer for all issued and outstanding shares not beneficially owned by the group and other delisting proponents, as part of the process to take the company private.

JE Holdings set the tender offer price at P48.30 per share, representing a 32.23% premium over RRHI’s one-year volume-weighted average price (VWAP) of P36.5285 as of March 26, based on an independent valuation and fairness opinion.

F. Yap Securities analyst Marky Carunungan said delisting RRHI at a value below its initial public offering price signals market undervaluation and allows a strategic reset.

“This move grants full flexibility to rationalize its portfolio, exit underperforming formats, and prioritize margin expansion over growth optics,” he said in a Viber message. “It positions the company for deeper restructuring and more disciplined, long-term capital allocation, even if it comes at the expense of near-term earnings volatility.”

In a separate Viber message, Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said the move reflects the firm’s strategy.

“The holdings firm may recognize long term value potential for RRHI, something that the general market does not see, judging from its share price performance. Hence, to maximize the potential gain, JE Holdings, Inc. decides to buy RRHI’s shares from the market,” he said.

Under existing rules, voluntary delisting requires a tender offer to public shareholders at a fair price and approval by at least two-thirds of the outstanding capital stock, including a majority of minority shareholders.

RRHI said shareholders will vote on the proposed delisting at its annual stockholders’ meeting on May 12, in line with regulatory requirements.

The company earlier announced the closure of its 11 No Brand standalone stores nationwide by end-June 2026, citing shifting consumer preferences and efforts to align its formats with customer demand.

For this year, the company has earmarked P5 billion to P7 billion in capital expenditures, mainly for store expansion and renovations.