Aboitiz ups stake in agribusiness unit

A month after completing the buyout of its partners in shipping line William, Gothong and Aboitiz (WG&A), Cebu-based holding firm Aboitiz Equity Ventures Inc. (AEV) has similarly raised its stake in an agribusiness subsidiary Fil-Am Foods.

AEV assistant corporate secretary Elsa Divinagracia informed the Philippine Stock Exchange that the company, through its wholly-owned food manufacturing subsidiary Pilmico Foods Corp., has completed the purchase of a 50-percent stake in Fil-Am Foods from its American partners Tyson Foods Inc. and PM Nutrition Co., a wholly-owned subsidiary of Purina Mills LLC.

Based in Capas, Tarlac, Fil-Am Foods is a feed milling and swine production company registered with the Board of Investments (BOI).

The acquisition, which would bring up Pilmico’s ownership in Fil-Am Foods to 100 percent, was agreed on last Aug. 7. Divinagracia did not disclose other details of the transactions but based on AEV’s carrying value of its 50-percent investment in Fil-Am Foods, the purchase would amount to around P206 million.

As part of the deal, the Purina group will continue to supply technology, feedmill management and associated technical support to Fil-Am Foods, which will be consistent with Fil-Am’s strategic direction of being a leader in technology in the industry and always providing differentiated products and services to its customers.

"This acquisition strengthens and further diversifies Pilmico’s focus and core competence in the grain milling industry," Divinagracia added.

Although Pilmico is not a core company in the power-dominated holdings of the Aboitiz group, it contributes a considerable portion in AEV’s income stream.

In the first nine months of 2002, Pilmico chipped in P194 million in net income, a 58 percent increase over the same period last year.

AEV, for its part, earned P1.805 billion or 49 percent more than the previous year, boosted mainly by contributions from its power generation subsidiaries. – Conrado Diaz Jr.