MANILA, Philippines — Universal Robina Corp. is taking over its joint venture business with Calbee after the Japanese snack foods giant decided to pull out of the Philippines after four years.
The joint venture has incurred a net loss for three consecutive years.
URC, one of the country’s biggest snack food companies, will purchase 32.7 million shares or 50 percent of Calbee-URC for P5.217 per share or a total of P170 million.
“The purchase will allow URC to have full control of CURC, consistent with its agenda of driving an aligned and scalable snacking category growth. Notwithstanding the signing of the share purchase agreement, Calbee agreed to enter into a licensing agreement with URC.
The licensing agreement will further promote URC’s agility and nimbleness both in decision-making and in day-to-day business transactions,” URC said in a disclosure yesterday.
Formed in 2014, the joint venture was formed to grow sales of Calbee products and expand market share in the Philippines. The primary purpose of the company was to manufacture, market, import, export, buy, distribute and sell various savory snack products.
“However, after three years passed from the start of production and sales of CURC products, based on the review of overseas business strategy of Calbee and by reviewing the profitability of the business, Calbee discussed with URC and mutually agreed that URC would take over the joint venture business,” Calbee said.
Calbee incurred a net loss of P100.4 million, P85.3 million and P95.7 million, in 2015, 2016, and 2017, respectively.
“Due to the transfer of shares, CURC will no longer exist as a consolidated subsidiary of Calbee. This is not expected to have a material impact on Calbee’s consolidated business result,” Calbee said.
At present, URC operates its food business through operating divisions and wholly-owned or majority-owned subsidiaries that are organized into three core business segments, namely, branded consumer foods, agro-industrial products and commodity food products - flour milling, sugar milling and refining.