THE agribusiness arm of Aboitiz Equity Ventures, Inc. (AEV) now fully owns Singapore-based Gold Coin Management Holdings, Inc., after purchasing the remaining 25% in the firm for $120 million.
In a disclosure to the stock exchange Wednesday, AEV said its wholly owned unit Pilmico International Pte. Ltd. will now have 100% ownership interest in Gold Coin following the execution of a separation and settlement agreement with the latter.
This comes less than a year after the company initially acquired the 75% stake in Gold Coin for $334 million. The acquisition cost was based on Gold Coin’s total enterprise value of $550 million. Pilmico will pay a one-time lump sum at the closing of the deal.
Pilmico said the transaction will expand the Aboitiz Group’s animal feeds business within the Asia-Pacific region, since Gold Coin is one of Asia’s largest privately-owned agribusiness corporations. It operates 20 livestock and aqua feed mills across 11 countries in Asia.
AEV earlier said that it will spend $200 million in the next two to three years to expand and upgrade Gold Coin’s facilities. This will be financed by a combination of loans and internally generated funds.
The company has been expanding its overseas footprint since 2014, when it acquired a 70% stake in Vinh Hoan Feeds (VHF) — one of Vietnam’s major aquafeeds producers. It then raised its stake in VHF to 85% in 2017.
Pilmico also acquired a 70% stake in animal feeds manufacturer Europe Nutrition Joint Stock Co. in 2017.
AEV reported a consolidated net income of P3.5 billion in the first quarter of 2019, 27% lower year on year as it was weighed down by non-recurring losses. This came amid a 28% increase in gross revenues to P47.4 billion in the same period.
Shares in AEV jumped 1.2% or 65 centavos to close at P54.80 each at the stock exchange on Wednesday. — Arra B. Francia