SEC okays capital hike of RFM-PEC to P600M

The Securities and Exchange Commission (SEC) has approved the increase in capital stock of RFM President Enterprises Corp. (RFM-PEC), the joint venture of food and beverage giants RFM Corp. and Uni-President Group of Taiwan, from P199 million to P600 million.

Documents filed with the SEC showed that out of the P401-million capital hike, P314 million have been subscribed and paid.

The Uni-President group runs the 7-Eleven chain of 24-hour convenience stores both in Taiwan and the Philippines. It acquired 50.4 percent of the local franchise from Philippine Seven Corp. a few years ago for P992 million.

RFM-PEC opened last year a P500-million food manufacturing plant at the RFM-owned Philtown Industrial Estate in Tanauan, Batangas.

The plant produces noodles under the Saucy Mi brand for instant pancit canton and the Nooda Crunch, a ready-to-eat healthy snack in unique noodle form.

The Uni-President group is the undisputed market leader in noodle products in Taiwan and the second largest noodle manufacturer in the world. It is also a dominant player in the food and beverage in China, and has a strong presence in Indonesia, Thailand and Vietnam.

The group exports a wide range of food products (such as flour, edible oil, instant foods, beverages, dairy products, condiments, bakery products, frozen health foods, and processed meat products) and animal feeds through more than 100 companies and affiliates worldwide.

As for RFM, its current line-up of branded food and beverage are specialty flour mixes under the White King brand, spaghetti and pasta products under the Fiesta brand, milk and milk products under the Selecta Moo brand, ready-to-drink and powdered juices under the Sunkist brand and chilled and canned meat under the Swift brand. It also includes Selecta ice cream and frozen novelties through a joint venture with Unilever.

Founded in 1967 with only 82 employees, the Uni-President group now has more than 6,000 employees and annual sales of around $6 billion.

Taiwan’s Manila Economic and Cultural Office (MECO) earlier said the group is exploring other investment opportunities in the country, specifically in flour milling, to further expand its presence here.

MECO is targeting to generate up to one billion dollars in foreign direct investments from Taiwan over the next three years as it steps up its investment promotion efforts through networking with Taiwan industry groups and the creation of special marketing teams.