LISTED sugar and ethanol producer Roxas Holdings, Inc. (RHI) has completed the sale of its assets to consumer goods giant Universal Robina Corp. (URC).
In a stock exchange disclosure on Thursday, RHI said that it had closed the sale of its sugar mill and ethanol plant in La Carlota City, Negros Occidental and its shares in Najalin Agri-Ventures, Inc. to URC.
RHI Executive Vice President Celso T. Dimarucut said the money received from the sale was allotted to reduce the debts of the company.
“With the changing market dynamics in the sugar industry, we need to refocus our resources and maximize our opportunity. Over time, we expect the group to fully recover and flex its financial muscle,” Mr. Dimarucut said.
RHI Chairman Pedro E. Roxas said the completion of the sale will let the sugar company focus its resources on Central Azucarera Don Pedro, Inc. (CADPI) and strengthen the operations of its ethanol facility San Carlos Bioenergy, Inc.
“We aspire to shape CADPI’s refinery, strategically situated in Batangas, into a facility with world-class operations that can cater to a larger market,” Mr. Roxas said.
Meanwhile, RHI President and Chief Executive OffIcer Hubert D. Tubio said the strategic location of CADPI provides easier access to industrial users such as food manufacturing companies and beverage producers.
“We hope to make CADPI ready and poised to seize opportunities with the expected increase in refined sugar consumption while helping the government minimize the importation of refined sugar,” Mr. Tubio said.
In September, the Philippine Competition Commission approved the transaction between RHI and URC, confirming that the sale will not result in the lessening of competition in the sugar market.
On Thursday, shares in RHI at the stock exchange went unchanged and closed at P1.68 each. — Revin Mikhael D. Ochave
