ABOITIZ Equity Ventures, Inc.’s food subsidiary Pilmico International Pte Ltd. has acquired a majority stake in Gold Coin Management Holdings Ltd (Gold Coin) for $334 million as Pilmico expands its animal feeds business in the Asia Pacific.
In a filing on Friday, Pilmico International said it signed a share purchase agreement with British Virgin Islands-registered Golden Springs Group, Ltd. (GSG) for a 75% equity interest in Singapore-based Gold Coin, one of Asia’s largest privately-owned agribusiness corporations.
The consideration is based on an enterprise value of $413 million, which is euivalent to 75% of the total enterprise value of $550 million. After adjustments, the final cash consideration is $334 million.
The transaction will be funded through bank financing, AEV said.
Pilmico International was awarded the stake following a competitive bid.
Gold Coin operates 20 livestock and aqua feed mills across 11 countries in Asia.
“ASEAN’s market size of over 500 million will bring many opportunities to expand our customer base. This acquisition serves as a platform towards achieving Pilmico’s strategy to grow our core feedmilling business beyond ASEAN and now across Asia,” Sabin M. Aboitiz, AEV Chief Operating Officer and Pilmico’s President and Chief Executive Officer, said in the statement.
“This acquisition will add three million metric tons of volume which quadruples our overall feeds production capacity,” he added.
AEV owns Pilmico International through its Singapore-based holding entity, AEV International Pte Ltd.
The Gold Coin acquisition is Pilmico International’s largest investment in the Asia-Pacific region to date.
Pilmico International embarked on its first ASEAN venture in Vietnam in 2014 when it bought a 70% stake in Vinh Hoan Feeds (VHF), one of Vietnam’s major aquafeeds producers.
Last year, it bought an additional stake in VHF to bring its total stake at 85%.
In September, Pilmico International bought a 70% stake in Europe Nutrition Joint Stock Co., also an animal feeds manufacturer.
“The Zuellig and Aboitiz families have known each other for generations. I am excited about the partnership with Aboitiz Group, one of the largest and most established conglomerates in the region. The partnership will strengthen GoldCoin’s growth profile and long-term value creation potential”, Peter Zuellig, chairman of GSG, was quoted as saying. — Janina C. Lim

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