Aboitiz Group shows interest in Pure Foods

MANILA, Philippines - The Aboitiz Group is interested in acquiring San Miguel Corp.’s Pure Foods Co. should the diversifying food and beverage company decide to rebid its food subsidiary.

Sabin M. Aboitiz, president and chief executive officer of Aboitiz food subsidiary Pilmico, said acquiring Pure Foods would dovetail with their company’s growing food business that includes animal feeds, poultry and swine production and flour milling operations.

Aboitiz said Pilmico has completed the construction of its feedmill plant in Iligan and expects the need to expand capacity by 2013 for its growing poultry and swine production operations.

“We’re planning our swine business… so you need more feeds because you’re selling feeds and you’re producing for your own,” he told reporters in Makati yesterday.

Aboitiz said Pilmico is likewise interested in acquiring a poultry farm rather than building a new one to expand its current poultry growing operations. He said Pilmico has an existing poultry farm but does not want to build a new farm and would prefer to just acquire an existing operation.

The sale of Pure Foods appears to have been temporarily shelved following the collapse of negotiations between SMC and two potential buyers.

The tie-up between Joselito Campos Jr. of Del Monte Pacific Ltd. And Richard Po of Century Pacific has not been successful in offering an attractive enough price to SMC for Purefoods.

On the other hand, the Gokongwei-owned Universal Robina Corp. has not been aggressive enough in its bid for Purefoods.

There are reports that instead of selling Purefoods, SMC is studying instead a possible share offering in the food subsidiary.

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