In a letter to the Philippine Stock Exchange, RFM corporate information officer Ramon Lopez said there is no certainty in the discussions yet as both Swift Foods Inc., the poultry subsidiary of RFM, and Vitarich "are still evaluating the opportunities for strategic alliance."
RFM executive vice president Felicisimo Nacino was quoted as saying the other day that the Concepcion-controlled food and beverage conglomerate was pursuing a strategic alliance with Vitarich as part of their effort to refocus on the branded food and refreshment business after agreeing to sell softdrink subsidiary Cosmos Bottling Corp. to the San Miguel group for P15 billion.
"For poultry, we’re talking with Vitarich. We’re looking at basically putting the two businesses together. There’s no certainty in the discussions yet. Vitarich is still thinking about it," Nacino said.
Vitarich said RFM approached them about three weeks ago to introduce the idea of the two companies getting together. But the company said the idea was broached in a very general and preliminary manner, without any concrete offers or proposals.
"There is no certainty that the talks will be pursued, much less than an agreement will be reached," Vitarich said.
At the stock exchange, speculative investors turned their attention to Vitarich for lack of any other possible market plays amid the continued weakness of the market. Vitarich shares led the top gainers with a price increase of 48.65 percent yesterday to close 18 centavos higher at P0.55.
Last year, sales of the livestock and poultry firm reached P5.86 billion, a 14-percent growth from the previous year. Its net income, however, went down from P249 million to P132 million due to the continued losses of its subsidiary Philippine Favorite Chicken, the operator of the Texas Chicken store chain.