LT Group hikes stake in Victorias Milling

MANILA, Philippines - Lucio Tan-led LT Group Inc. (LTG) has further increased its ownership in listed sugar miller Victorias Milling Co. Inc. (VMC). In a disclosure to the local bourse yesterday, LTG said it has acquired 63.16 million common shares in VMC held by the Development Bank of the Philippines at P5.32 apiece.

After the acquisition, LTG now owns 23.5 percent of VMC.

In April, LTG doubled its ownership in VMC from 7.4 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.

VMC, on the other hand, is engaged in integrated raw and refined sugar manufacturing.

Its plant facilities are located in Victorias City, Negros Occidental.

It 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 Co. Inc., and Victorias Industrial Gases Corp.

VMC has been paring down its debt to strengthen its balance sheet as it upgrades its production facilities in preparation for heightened competition when sugar tariffs across the Association of Southeast Asian Nations 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.

The increase in LTG’s holdings in VMC is seen as a defensive move amid earlier 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.