MANILA, Philippines - Lucio Tan-led LT Group. Inc (LTG) has doubled its stake in sugar miller Victorias Milling Co. Inc. (VMC).
In a regulatory filing yesterday, the company said it has raised its stake in VMC from 7.40 percent to 14.8 percent.
LTG is engaged in the manufacture of tobacco products and distilled spirits as well as property development.
Its subsidiaries include Tanduay Distillers Inc., Asia Brewery Inc., Philip Morris Philippines Manufacturing Inc., and Eton Properties Philippines Inc.
The increase in LTG’s holdings in VMC is seen as a defensive move amid reports that Pangilinan-led First Pacific Group has expressed interest in buying into VMC through the acquisition of the Metrobank Group’s seven-percent stake.
If this pushes through, this would be First Pacific’s second foray into the sugar business after acquiring 34 percent of listed sugar miller Roxas Holdings Inc. last year.
VMC, on the other hand, is engaged in integrated raw and refined sugar manufacturing. It’s plant facilities are located in Victorias City, Negros Occidental.
VMC has subsidiaries engaged in fish canning, real estate, sugar sacks manufacturing and packaging, and golf course and restaurant operations.
The operating subsidiaries of VMC include Victorias Foods Corp., Victorias Agricultural Land Corp., Canetown Development Corp., Victorias Golf and Country Club, Inc., Victorias Quality Packaging Company, Inc., and Victorias Industrial Gases Corporation.
The company has been paring down its debt to strengthen its balance sheet as it ugrades its production facilities in preparation for heightened competition when sugar tariffs across the Association of Southeast Asian Nations (ASEAN) is reduced to between five percent to zero by 2015.
VMC is also the primary sugar supplier to LTG’s liquor manufacturing unit Tanduay Distillery.