Cosco Capital Inc, the holdings company from the Philippines, has announced it had raised US$400 million through the sales of its shares at a 30% discount from stock prices.

Majority shareholder Lucio Co joined Cosco Capital in selling off 1.6 billion shares pegged at Php10.50 per share in a transaction that expanded the public ownership in the firm to 30% of outstanding shares. The share sale was managed by Stephen CuUnjieng, chairman of Evercore Partners Inc Asia unit.

CuUnjieng said that the shares sold were originally known as Alcorn Gold Resources Corp. Share values had dropped 32% to Php 10.20 per share at the close of trading  in Manila. This was the largest drop in the share values since Jan. 21, 2003. The stock closed at Php15.00 per share on May 29, was forced to halt trading in May 30 because of the steep decline. Overall, the benchmark index increased by 1% in trading today, May 31.

According to Cosco President Leonardo Dayao, in a press briefing, three quarters of the sale proceeds would go directly to Cosco for the expansion of its retail and liquour businesses. It would also be used to pay debt and acquire non-food ventures. Cosco is the controlling shareholder in Puregold Price Club Inc.