October 27, 2009
Philippines' Monterey Foods Corporation acquires livestock firm
Monterey Foods Corporation, the largest hog raiser in the Philippines, has secured regulatory approval for a merger with a recently bought company to improve efficiency of its operations.
Documents from the Securities and Exchange Commission (SEC) stated that Monterey Foods was the surviving company after merging with Highbreed Livestock Corp., a firm engaged in livestock farming and processing, selling of pork and beef and leasing of properties.
As a result of the merger, Monterey Foods would add Highbreed Livestock's assets and liabilities worth PHP921.78 million (US$19.54 million) and P959.08 million (US$20.33 million), respectively, as of March 31 to its own, which stood at PHP4.95 billion (US$104.93 million) and PHP4.69 billion (US$99.42 million).
Monterey Foods, a subsidiary of San Miguel Pure Foods Co., Inc., said the merger would benefit both parties' shareholders due to the maximised synergies in their businesses.
The SEC permitted the merger on Oct. 22 while both firms' boards approved the plan on June 22. Officials of Monterey Foods were unable to provide more details about the effect of the merger.
In San Miguel Corporation's second- quarter financial report submitted to securities regulators, it said Monterey Foods acquired the subscription rights of certain individuals in Highbreed Livestock for P6.25 million. As part of the deal, Monterey Foods also assumed the unpaid subscription of the said individuals worth P18.75 million in Highbreed Livestock.
In the first half, San Miguel Pure Foods said Monterey Foods registered a 9 percent sales growth despite the weakened consumer demand.
US$1 = PHP47.17 (Oct 27)
