EEI CORP. valued its investment in food manufacturer Biotech Japan Corp. at P81 million, as part of the company’s diversification strategy.
In a disclosure to the stock exchange on Monday, EEI said it will acquire 60% of the outstanding shares in Biotech JP, or 181,818 shares priced at P445.50 each.
The Yuchengco-led construction firm will make the payment by Nov. 30, which will be held in trust until such time that Biotech JP increases its authorized capital stock to 303,030 common shares. The company noted that Biotech JP will amend its articles of incorporation to reflect the increase in authorized capital stock.
“The investment is in line with the corporation’s diversification strategy and contribution to the sustainability goals of the country,” EEI Said.
Based in Niigata, Japan, Biotech JP manufactures food products using Japanese patented bacteria technology for preserving and packaging rice. Its off-the shelf rice products includes Echigo Protein rice, Insta-Rice pre-cooked packed rice, Gohan Lite calorie reduced precooked rice, and Rice-to-go ready to eat rice.
Biotech JP further has patented bacteria technology that allows it to increase yields of rice plants, while eliminating fertilizers with phosphate that pollute farmlands and bodies of water.
Incorporated in 1931, EEI started out as a machinery and mills supplier for the mining industry before expanding into construction services. The company is now involved in the installation, construction, and establishment of power generating facilities, oil refineries, chemical production plants, cement plants, and food and beverage manufacturing facilities, among others.
EEI is part of the Yuchengco Group of Companies, which has interests in banking, financial services, and property development.
EEI’s net income attributable to the parent climbed 36% to P690.31 million in the first nine months of 2018, driven by a 51% surge in gross revenues to P15.85 billion.
Shares in EEI jumped 1.18% or 10 centavos to close P8.56 apiece at the stock exchange on Monday. — Arra B. Francia