The shareholders of both the publicly-listed Central Azucarera de la Carlota (CAC) and CADP have approved the former’s reorganization that will involve the consolidation of the CADP group’s sugar business now under CAC’s sugar operations in Negros and its sugar manufacturing operations in Nasugbu, Batangas.
The CADP group contributes about 16 percent of total industry production with a raw sugar production of 36 million bags during the past crop year. The group has a sugar plantation and milling facilities in Negros and Batangas.
In its past fiscal year ending June 2001, CAC posted record net sales of P1.073 billion on the back of strong production and favorable sugar retail prices. Sales rose 24 percent from P867 million in the previous year as the company recorded 15-year highs in sugar production of 2.678 million bags and cane tonnage milled of 1.549 million metric tons.
"The reorganization program will enable us to enhance the company’s shareholder value and prime the consolidated sugar operations under CAC for future growth," CADP chairman Pedro Roxas said.
He noted that under a single corporate structure, the consolidated sugar business will have seamless management and will enable the company to take full advantage of synergies in manufacturing, logistics, marketing, financial management and human resources administration.
"The resulting CAC will be a larger corporation with greater business focus and stronger financial position," Roxas said, CADP owns 73 percent of CAC.
Along this line, CAC will increase its authorized capital from P400 million to P2 billion to enable it to absorb the CADP Batangas and other allied operating subsidiaries.